Bihar – ED raids 18 locations of RJD leader & ex minister Alok Kumar Mehta in multi-crore bank fraud case.
Raid was conducted in Bihar, West Bengal, UP & Delhi. 18 locations were targeted as part of an investigation into ₹85 crore bank loan fraud of Vaishali Shahri Vikas Co-operative Bank Ltd. ED has found around 400 fake loan accounts in the scheme.
According to officials, funds were disbursed using fabricated documents, including forged warehouse and Life Insurance Corporation (LIC) receipts "Funds were disbursed based on fabricated documents, including forged warehouse and Life Insurance Corporation (LIC) receipts." an official said.
Bank employees and private individuals were involved in the conspiracy with Mehta and his associates.
"The investigation revealed the alleged involvement of bank employees and private individuals who conspired with Alok Kumar Mehta and his associates to syphon off the proceeds of the crime. These individuals are believed to have played key roles in facilitating the fraud and benefiting from the misappropriated funds," an official said.
ED is gathering more evidence and tracing the money trail.
This is the latest in a series of big financial fraud cases in the country as enforcement agencies go after economic offenders.
Alok Kumar Mehta is an RJD MLA from Ujiarpur constituency and a big name in Bihar politics and close to RJD chief Lalu Prasad Yadav. He has been in various roles over the years, including a cabinet minister in Bihar government where he handled cooperative development portfolio.
A seasoned politician, Mehta is known for his grassroots movement and RJD’s core social justice ideology. But his political career has not been without controversy and recent financial irregularities have brought him under ED’s scanner.
