ED raids RJD MLA, others in Bihar co-op bank 'fraud' PMLA case

The money laundering investigation stems from some state police FIRs filed against the bank and its office-bearers for alleged embezzlement of funds worth about Rs 85 crore, sources said.

Patna: The Enforcement Directorate Friday conducted searches in multiple states, including in Bihar on premises liked to RJD MLA Alok Kumar Mehta, as part of a money laundering investigation linked to alleged funds embezzlement at a state cooperative bank, official sources said.

About 18 premises in Bihar, West Bengal (Kolkata), Uttar Pradesh and Delhi are being searched, they said.

These include premises linked to RJD MLA and former Bihar minister Alok Kumar Mehta (58), who is among the promoters of the Bihar-based Vaishali Shahri Vikas (VSV) Cooperative Bank, apart from some other linked entities, the sources said.

The RJD slammed the BJP-led central government over the ED action.

The money laundering investigation stems from some state police FIRs filed against the bank and its office-bearers for alleged embezzlement of funds worth about Rs 85 crore, they said.

The alleged fraud was committed through an estimated 400 loan accounts and disbursal of funds was done based on "fake or forged" warehouse receipts, an agency official said.

The bank employees and other private persons, who are the alleged beneficiary of the proceeds of crime and worked in connivance with Alok Mehta and his associates, are also covered in the search operations, the sources said.

The RBI had carried out a verification of the bank and identified the alleged diversion of the bank funds, they added.

Mehta, a senior members of the Lalu Prasad Yadav-led Rashtriya Janta Dal (RJD), is an MLA from the Ujiarpur seat of Bihar. He has earlier served as the minister for revenue and land reforms in the state.

Commenting on the ED action, RJD spokesperson (Bihar unit), Mrityunjay Tiwary, told PTI, "The BJP uses ED, CBI and IT department against the RJD and leaders of other opposition parties... It is evident that the rulers in Delhi are afraid of the RJD and its leaders that's why they are using central probe agencies against our leaders".