ED Cracks Down on Patna Railway Claims Tribunal Scam: Three Advocates Arrested in Money Laundering Operation
(Judicial Quest News Network)
Patna 23, January, 2025. In a significant development, the Directorate of Enforcement (ED) has launched a major crackdown on a money laundering case linked to a large-scale scam at the Patna Railway Claims Tribunal (RCT). The ED conducted coordinated search operations on January 22, 2025, across four locations in Patna, Nalanda, and Mangalore, all connected to the mastermind behind the scandal, Judge R.K. Mittal, and other key figures involved in the fraudulent scheme. The ED’s operation resulted in the arrest of three advocates—Bidyanand Singh, Parmanand Sinha, and Vijay Kumar—on charges of money laundering under the Prevention of Money Laundering Act (PMLA), 2002.
The arrested advocates were presented before the Hon’ble Special Court (PMLA), where they were remanded to judicial custody. The ED’s investigation was prompted by the FIRs filed by the Central Bureau of Investigation (CBI), Anti-Corruption Bureau (ACB), Patna, which exposed widespread irregularities and criminal activities surrounding accidental death claim cases filed, processed, and decided at the Patna Railway Claims Tribunal.
The Scam Unfolds:
The FIRs allege that in a criminal conspiracy involving Judge R.K. Mittal and a team of advocates including Bidyanand Singh, Parmanand Sinha, and Vijay Kumar, substantial sums of money were siphoned off from rightful claimants in accident-related death compensation cases. While the claimants were legally awarded compensation by the Railway Claims Tribunal, they received only a fraction of the decreed amount. The bulk of the compensation funds were fraudulently diverted by the conspirators for personal gain.
As the ED delved deeper into the case, it was revealed that Bidyanand Singh and his team were involved in manipulating at least 900 cases, in which compensation totalling approximately Rs. 50 Crore was awarded to claimants. The accused lawyers allegedly opened and controlled the bank accounts of the claimants without their knowledge or consent. By forging signatures and thumbprints of the claimants, they successfully transferred the awarded amounts into their own accounts or withdrew the money in cash. The claimants were then given only a portion of the compensation, based on the whims of the accused, while the remainder was pocketed by the conspirators.
Assets Seized and Evidence Uncovered:
During the extensive search operations, the ED uncovered a range of incriminating evidence, including physical and digital records. Among the items seized were signed blank bank cheques, signed blank papers from claimants, and other documents indicating the illicit activities carried out by the accused. Additionally, the searches revealed assets that had been illicitly acquired by the advocates and Judge Mittal, under their names, using funds from the fraudulent scheme.
The investigation continues as the ED aims to trace the full extent of the money laundering operation, including any other individuals or entities involved in the conspiracy. The recovery of evidence and identification of illegally acquired assets is expected to further solidify the case against the accused.
Ongoing Investigation:
The ED has assured that the investigation is ongoing and further action will be taken against those found involved in the scam. The case highlights the vulnerabilities within the Railway Claims Tribunal system and underscores the need for rigorous monitoring and accountability to prevent such large-scale exploitation of claimants.
This operation marks a crucial step in the fight against corruption and financial fraud, sending a strong message that such criminal activities will not be tolerated, especially when they target vulnerable individuals seeking justice.
