Bank loan fraud: ED raids in case against company promoted by former UP MLA

The Enforcement Directorate on Friday raided locations in Uttar Pradesh, Gujarat and Haryana as part of an alleged Rs 750 crore bank loan fraud linked money laundering probe against a road construction and toll plazas operating company promoted by a former UP MLA, official sources said.

The search action is being taken against Gangotri Enterprises and its main promoters Vinay Shankar Tiwari, Rita Tiwari and Ajeet Pandey. These accused are alleged to have indulged into an alleged bank loan fraud of about Rs 750 crore between 2012 and 2016 against a consortium of banks led by the Bank of India, the sources said.

Vinay Shankar Tiwari is the son of late former minister and strongman from Gorakhpur Hari Shankar Tiwari. He represented his father's assembly constituency of Chillupar in Gorakhpur after he was elected on a BSP ticket. He later joined the Samajwadi Party.

About ten premises in Lucknow, Gorakhpur and Noida in UP, Ahmedabad (Gujarat) and Gurugram (Haryana) are being searched by the ED officials, they said.

Gangotri Enterprises is a company that undertakes construction of roads, operates toll plazas and other government contracts.

The agency had attached assets worth about Rs 72 crore of the company in this case in November, 2023.