Bihar cooperative bank fraud case: Enforcement Directorate raids RJD MLA Alok Kumar Mehta, others

Sources in the ED said that the matter is related to alleged bank loan fraud of ₹85 crore in Vaishali Shahri Vikas Co-operative Bank Limited

The Enforcement Directorate (ED) on Friday (January 10, 2025) conducted a search operation on the premises linked to Rashtriya Janata Dal (RJD) MLA and former Minister Alok Mehta in a money-laundering case.

Mr. Mehta is a senior leader of the party and close to party chief Lalu Prasad and his son Tejashwi Yadav, who is the Leader of Opposition in Bihar legislative Assembly. The ED is conducting raids at 18 locations including his Patna residence as well as other locations in Uttar Pradesh, West Bengal, Delh. In Bihar, the ED conducted raids in Vaishali, Ujiarpur, the Assembly constituency which Mr. Mehta represents.

Mr. Mehta has also been an MP from Samastipur as well. Early morning, a team of ED reached his official residence at 12-Mangles Road in Patna and began investigation.

Sources in the ED said the matter is related to alleged bank loan fraud of ₹85 crore in Vaishali Shahri Vikas Co-operative Bank Limited. The alleged fraud was committed through approximately 400 fraudulent loan accounts and disbursal of funds based on fake/forged warehouse/LIC receipts.

“The bank employees and other private persons who are the beneficiary of the proceeds of crime and worked in alleged connivance with Mr. Mehta and his associates are also covered in the search operations,” said an ED source.

When Mr. Mehta was Revenue and Land Reforms Department Minister in 2023, Chief Minister Nitish Kumar had cancelled the transfer posting of 480 officers made by him. Mr. Mehta had also served as Co-Operative Department Minister when Nitish Kumar had first formed the government with RJD in 2015. Mr. Mehta was Minister till 2017.

Ruling Janata Dal (United) MLA Neeraj Kumar Singh targeted RJD saying that Vaishali, the land of democracy, has been ashamed by the act of RJD MLA.

“As soon as one gets a post, scams get started. Lalu’s ideology prevails in RJD and Lalu ji icon for Tejashwi Yadav so it is obvious that its impact would be visible. So, finally former Minister Alok Mehta has come into the clutches of ED,”Mr. Kumar said.

RJD spokesperson Shakti Yadav termed the ED raid politically motivated. “ED raids the houses belonging to backward castes, be it Nonia, Mehta, Beldar and others. Being election time, they are raiding the houses of Opposition leaders. ED is an alliance partner of Bharatiya Janata Party (BJP) and acting upon their instruction,”Mr. Yadav said.

BJP spokesperson Prabhakar Mishra attacked RJD over the ED raid alleging that RJD has the habit of looting the hard earned money of common people. RJD Chief Lalu Prasad himself has looted huge money.

In the 2024 Lok Sabha elections, RJD had made Mr. Mehta its candidate from Ujiarpur Lok Sabha constituency, but he lost against BJP candidate Nityanand Rai.

Published - January 10, 2025 11:25 am IST