ED raids ex-Bihar minister, others in bank fraud case; searches on in 4 states

The Enforcement Directorate has launched searches in multiple states, including in Bihar on 18 premises linked to an RJD MLA, as part of a money laundering probe linked to an alleged fraud of Rs 85 crore at a cooperative bank.

In Short

• Properties of RJD MLA Alok Kumar Mehta among those searched
• Probe follows FIRs on Rs 85 crore fraud in cooperative bank
• RJD is yet to comment on ED raids

The Enforcement Directorate on Friday launched searches on 18 premises linked to an Rashtriya Janata Dal (RJD) MLA, as part of a money laundering investigation into an alleged fraud of Rs 85 crore in a state cooperative bank.

The searches on the 18 premises in Bihar, West Bengal, Uttar Pradesh and Delhi were launched by the ED officials on Friday morning and were undergoing at the time of writing of this news.

The premises include properties of RJD MLA and former Bihar minister Alok Kumar Mehta (58), who is the promoter of the Bihar-based Vaishali Shahri Vikas (VSV) Cooperative Bank, apart from some other properties of other officials and customers of the bank, the sources said.

Mehta is an MLA from the Ujiarpur seat of Bihar and is a senior politician of the Lalu Prasad Yadav-led Rashtriya Janta Dal (RJD). He has earlier served as the minister for revenue and land reforms in the state.

The ED investigation stems from some state police FIRs filed against the bank and its office-bearers for alleged embezzlement of funds worth about Rs 85 crore.

According to the allegations, as many as 400 fake accounts were opened in the bank and funds were diverted to them based on fraudulent LIC receipts and warehouses.

The RJD has not yet commented on the raids by the ED.