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.

The Enforcement Directorate (ED) has provisionally attached assets valued at approximately ₹13.83 crore as part of its ongoing money laundering investigation into an alleged scholarship fraud involving funds earmarked for Scheduled Caste (SC) and Scheduled Tribe (ST) students in Uttarakhand.

The case pertains to the alleged misuse and diversion of post-matric scholarship funds distributed between the academic years 2011-12 and 2016-17, which were intended to support the education of economically disadvantaged students.

Probe Triggered by Police Investigation

According to the ED, the money laundering investigation originated from a First Information Report (FIR) registered by the state police regarding suspected irregularities in the allocation and utilization of scholarship funds.

Investigators have alleged that several private educational institutions and associated organizations fraudulently claimed scholarship benefits by listing ineligible or unverifiable students as beneficiaries.

Among the institutions under scrutiny are educational establishments located in Uttarakhand and neighboring Uttar Pradesh. Authorities are examining the role of managements, trusts, and affiliated societies that allegedly received government funds through questionable scholarship claims.

Thousands of Claims Examined

The agency stated that investigators reviewed thousands of scholarship applications processed through the District Social Welfare Office in Haridwar during the period under examination.

According to findings cited by the ED, 6,208 scholarship claims resulted in the disbursement of nearly ₹27.98 crore in government funds. Of this amount, approximately ₹19.74 crore was reportedly transferred directly to institutional accounts, while around ₹8.24 crore was credited to bank accounts opened in the names of students.

The investigation has identified 2,895 claims that are alleged to be fraudulent. Authorities claim that many beneficiaries either could not be verified, were not enrolled in the institutions concerned, or were found to be absent during verification exercises.

Alleged Diversion Through Student Accounts

Investigators further allege that bank accounts created in the names of students were controlled by individuals associated with the educational institutions. Scholarship funds deposited into these accounts were allegedly routed back to colleges, trusts, and related entities through transfers and cash withdrawals.

The ED believes the funds were subsequently diverted through multiple channels, including educational societies and third-party entities, in an effort to conceal the source and utilization of the money.

Assets Attached as Investigation Continues

The provisional attachment of properties worth ₹13.83 crore forms part of the agency’s efforts to secure assets believed to be linked to the alleged proceeds of crime.

Officials stated that the investigation remains active, with authorities continuing to trace financial transactions, identify beneficiaries of the alleged fraud, and determine the full extent of the scholarship fund diversion.

The case is one of the most significant probes involving alleged misuse of welfare funds intended for SC and ST students, highlighting concerns over accountability and transparency in the distribution of educational assistance programmes.

The Enforcement Directorate (ED) has provisionally attached properties valued at approximately ₹13.83 crore as part of its ongoing investigation into an alleged scholarship scam involving funds earmarked for Scheduled Caste (SC) and Scheduled Tribe (ST) students in Uttarakhand.

The action forms part of a money laundering probe into the suspected diversion of post-matric scholarship funds distributed between 2011-12 and 2016-17. Investigators are examining allegations that government welfare funds intended for disadvantaged students were fraudulently obtained through fake enrolments and manipulated records.

Scholarship Fraud Probe Stems From Police Case

The ED said its investigation was initiated on the basis of a case registered by state police regarding irregularities in the distribution of scholarship benefits.

According to the agency, several private educational institutions and their associated trusts or societies allegedly claimed scholarship funds by presenting ineligible, unverifiable, or non-existent students as beneficiaries. The institutions under scrutiny include colleges located in Uttarakhand and neighbouring Uttar Pradesh.

Officials believe the alleged fraud enabled educational entities to access government funds that were intended exclusively for eligible SC and ST students pursuing higher education.

Nearly 6,300 Scholarship Claims Examined

Investigators reviewed thousands of scholarship applications processed through the District Social Welfare Office in Haridwar during the period covered by the inquiry.

According to ED findings, 6,208 scholarship claims led to the release of approximately ₹27.98 crore in scholarship assistance. Of this amount, around ₹19.74 crore was credited directly to institutional accounts, while nearly ₹8.24 crore was transferred to bank accounts opened in the names of students.

The agency alleges that 2,895 claims were fraudulent. Verification efforts reportedly found that a significant number of beneficiaries were either not enrolled in the institutions concerned, could not be verified, or were absent during investigations.

Alleged Misuse of Student Bank Accounts

The probe has also uncovered allegations that bank accounts opened in students’ names were operated by individuals linked to educational institutions.

According to investigators, scholarship funds deposited into these accounts were subsequently transferred to college accounts, educational societies, trusts, and related entities. In some cases, the money was allegedly withdrawn in cash before being diverted through multiple channels.

The ED suspects that these transactions were designed to conceal the origin and movement of funds obtained through the alleged fraudulent scholarship claims.

Assets Attached as Financial Investigation Continues

The provisional attachment of properties worth ₹13.83 crore represents a key step in securing assets believed to be linked to the alleged proceeds of crime.

Officials stated that the investigation remains ongoing and will continue to focus on tracing financial transactions, identifying individuals who benefited from the alleged scheme, and determining the full extent of the diversion of public funds.

The case has attracted significant attention due to the alleged misuse of welfare resources intended to support students from marginalized communities, raising broader concerns about oversight and accountability in scholarship distribution programmes.