ED Conducts High-Profile Raids in Multi-Crore Bank Fraud Case Involving Former MLA and Associates
(Judicial Quest News Network)
Lucknow 8, April,2025. In a substantial development, the Directorate of Enforcement (ED), Lucknow Zonal Office, conducted extensive search operations on April 7, 2025, across 10 locations in Lucknow, Gorakhpur, Maharajganj, Noida (U.P.), and Mumbai. The operations were part of an investigation into a massive bank fraud case involving M/s Gangotri Enterprises Limited (GEL) and its associates under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The raids targeted the residences and office premises of Vinay Shankar Tiwari, a former Member of the Legislative Assembly (MLA), along with other directors and contractors linked to M/s Gangotri Enterprises Limited. The objective was to trace and recover the proceeds of crime amounting to a staggering ₹754 crore, which were allegedly siphoned off through fraudulent activities.
The ED’s probe was initiated following an FIR registered by the Central Bureau of Investigation (CBI), revealing that M/s GEL orchestrated a massive bank fraud in collusion with its directors, promoters, and guarantors. Investigations uncovered a complex web of financial misappropriation, where funds were diverted and siphoned off to various shell companies operated by the main promoter, Vinay Shankar Tiwari, his family members, and close associates. This fraudulent activity caused a substantial wrongful loss to a consortium of banks.
The ED had earlier issued two Provisional Attachment Orders (PAOs) in this case. The first PAO, dated November 17, 2023, involved assets worth ₹72.08 crore, followed by a second PAO on March 18, 2024, amounting to ₹30.86 crore. Both orders were subsequently confirmed by the Adjudicating Authority.
During the search operations, it was discovered that the diverted funds were masked under the guise of investments, interest-free loans, and advances to group companies. Additionally, several high-value properties were transferred to benami (proxy) entities without any legitimate consideration once the loan accounts turned into non-performing assets (NPAs). The raids led to the recovery of several incriminating documents, shedding light on the extent of the financial irregularities.
In a pivotal development, two key individuals—Vinay Shankar Tiwari, the main promoter of M/s GEL and former MLA, and Ajeet Pandey, a key managerial personnel of the company member member—were arrested from the search premises. They were subsequently produced before the Hon’ble Court (PMLA) in Lucknow, which remanded them to 14 days of judicial custody. The court also granted the ED’s plea for remand, allowing further interrogation of the accused until April 11, 2025.
The investigation is ongoing as the ED continues to delve deeper into the complex financial transactions and uncover the full extent of the alleged money laundering and bank fraud activities.
