ED Raids 11 Locations in ₹155 Crore Mahesh Timber Bank Fraud Probe

The Enforcement Directorate (ED) has intensified its investigation into an alleged bank fraud exceeding ₹155 crore by carrying out coordinated searches at 11 locations across Delhi, Haryana, and Goa. The operation is part of an ongoing money laundering probe involving Mahesh Timber Pvt. Ltd. and several individuals accused of orchestrating a large-scale financial fraud.

The searches were conducted under the provisions of the Prevention of Money Laundering Act (PMLA) and targeted premises associated with multiple suspects, including business associates and individuals allegedly connected to the company’s financial transactions.

Probe Originates From CBI Fraud Case

According to officials, the ED’s investigation is based on a case initially registered by the Central Bureau of Investigation (CBI), which alleged significant financial losses to a consortium of banks led by Oriental Bank of Commerce.

Among those named in the investigation is Deepak Singla, who has been identified as an accused in the case. Authorities are examining the movement of funds and the alleged laundering of proceeds generated through fraudulent banking transactions.

Investigators estimate that the alleged scam caused losses of approximately ₹155.21 crore to lending institutions.

Allegations of Forged Import and Trade Documents

The ED claims that a network of interconnected firms operating in India and overseas was used to facilitate the alleged fraud. Investigators allege that key individuals associated with the case manipulated banking facilities by submitting forged trade-related documents to secure higher credit limits.

According to the agency, foreign letters of credit initially approved for a much smaller amount were allegedly increased substantially through the use of fabricated bills of lading, import records, contracts, and other supporting documents.

Authorities further suspect that several transactions shown as international timber imports may not have involved any actual movement of goods, raising concerns about the authenticity of the underlying trade activities.

Investigators Examine International Financial Links

The money laundering probe is also focusing on the financial relationships between entities based in India and Singapore. Officials believe these connections may have played a role in facilitating the alleged diversion and concealment of funds.

The ED stated that evidence collected so far points toward a coordinated effort to obtain bank financing through misrepresentation and falsified documentation.

Former Bank Official Under Investigation

The agency is also examining the role of a former branch manager of Oriental Bank of Commerce who allegedly approved enhanced credit facilities despite irregularities in documentation.

Investigators suspect that internal lapses and possible collusion may have contributed to the execution of the alleged fraud. The former official has already been removed from service, and authorities are assessing his involvement in the transactions under scrutiny.

Financial Trail Under Examination

The latest searches are aimed at gathering additional evidence related to the movement of funds, ownership structures of linked entities, and the utilization of alleged proceeds of crime.

Officials said the investigation remains ongoing, and further action may follow based on evidence collected during the raids. The agency continues to analyze financial records, banking transactions, and cross-border dealings connected to the case.

The probe highlights growing enforcement efforts against large-scale banking frauds and financial crimes that impact public sector lenders and the broader financial system.