ED arrests 4 in case involving RJD MLA

PATNA: The Enforcement Directorate (ED) has arrested four persons, including a former CEO, in a money laundering case linked to a Bihar-based cooperative bank, promoted by RJD MLA Alok Kumar Mehta.

The Vaishali Shahri Vikas Cooperative Bank is accused of syphoning off approximately Rs 85 crore. On January 10, the ED extensively searched various properties of Mehta, a sitting MLA from Ujiarpur and former state minister for revenue and land reforms, and some other related organisations.

Vipin Tiwari, former CEO of the bank; his father-in-law, Ram Babu Shandilya; and two others, Nitin Mehra and Sandeep Singh, are among those arrested by the ED. The accused were presented in a court dealing with cases under the Prevention of Money Laundering Act (PMLA) and were subsequently sent to judicial custody.

According to sources, the alleged fraud was related to almost 400 loan accounts, with disbursements reportedly made against fabricated warehouse receipts.

The Reserve Bank of India had detected significant irregularities in the bank’s operations during a verification process, prompting the ED to initiate its probe. It involved several bank employees and private individuals who were thought to have colluded with Mehta and his associates. The ED suspects these individuals were involved in diverting funds and deriving benefits from the proceeds of crime.