The Enforcement Directorate (ED) has carried out a major search operation in Indore in connection with an alleged ₹58 crore bank loan fraud, intensifying its probe into suspected financial irregularities and money laundering. A team from the ED’s Delhi office conducted coordinated raids on Wednesday at multiple locations linked to businessman Umesh Shahra, a chartered accountant associated with his company, and other related premises. Several crucial documents and financial records were seized during the operation.
According to official sources, the searches were conducted at four locations across different parts of Indore. These included residential and business premises connected to Shahra and chartered accountant Ishwar, who is believed to have played a role in the preparation and processing of financial documents linked to the loan transaction. The action was part of an ongoing investigation into a bank loan allegedly obtained through forged and misleading documents.
Background of the case
The case pertains to a ₹58 crore loan fraud that surfaced in 2021. Investigating agencies allege that the loan was sanctioned by Bank of Baroda on the basis of falsified documents submitted by entities linked to Ruchi Global. The loan amount was allegedly misutilised, and repayments were not made within the stipulated time, resulting in significant losses to the bank.
Following the detection of irregularities, Bank of Baroda officials filed a formal complaint with the Enforcement Directorate in 2021. Based on the complaint and preliminary findings, the ED registered a case under the Prevention of Money Laundering Act (PMLA) and began a detailed investigation into the matter.
Focus of the investigation
ED officials said the current searches are aimed at tracing the money trail and determining how the loan amount was routed and utilised. During the raids, the agency examined bank records, transaction statements, company files, and other financial documents. Digital evidence is also being scrutinised to establish links between the accused parties and the alleged diversion of funds.
Sources indicated that key individuals associated with Ruchi Global are also under the ED’s scanner. The agency is examining the loan approval process, the role of intermediaries, and whether proceeds of crime were laundered through multiple channels.
ED team returns to Delhi
After day-long search operations, the ED team departed Indore for Delhi along with the seized documents. These records will now be analysed in detail to assess the scale of financial irregularities and identify additional beneficiaries, if any. Officials said further summons and questioning of concerned individuals may follow based on the findings.
What lies ahead
The ED is expected to take further action after completing the analysis of seized material. If violations under the PMLA are established, the agency may proceed with attachment of properties, additional searches, and arrests as permitted under law. Officials have indicated that more disclosures are likely as the investigation progresses.
The case has drawn attention as one of the significant banking fraud probes in Madhya Pradesh in recent years and is being closely watched by regulatory and financial institutions.
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