Datanomics: Bank fraud accounts for 30% of cases investigated by ED

The number of fraud cases investigated by the ED has been steadily increasing, over a decade till 2024

Reliance Infrastructure Chairman Anil Ambani was summoned by the Enforcement Directorate (ED) on August 5 in connection to a loan fraud case. This is one of the many such investigations by the ED related to bank fraud. Under the Prevention of Money Laundering Act (PMLA), 3,849 cases were investigated from 2015 to 2024 of which 30 per cent were related to bank frauds. However, the conviction rates remained poor in proportion to the registered cases. Since 2015, the ED has registered 5,892 cases, but only 15 individuals were convicted. The ED however, did restored a sizable amount of money involved in such cases. The ED probed 30 cases between August 2024 and March 2025, during which it recovered ₹15,261 crore, mostly from cases related to bank frauds. 

 

Rise in bank fraud  cases probed by ED 

 

The number of fraud cases investigated by the ED has been steadily rising. Correspondingly, bank fraud cases rose too, although not in proportion to the overall spike. 

 

(Sources: ED annual report , BS calculation) 

Low conviction rate  

 

The conviction rate in PMLA cases remains disproportionately low compared to the total number of PMLA cases registered by the ED. 

 

High-profile bank fraud cases

 

From August 2024 to March 2025, the ED recovered more than ₹100 crore in 11 of the 30 cases. Five of these were related to bank fraud.