The Enforcement Directorate (ED) conducted search operations at ten locations in Delhi, Uttar Pradesh, and Punjab regarding an alleged bank loan diversion and money-laundering case involving M/s Santosh Overseas Ltd (SOL). The searches were carried out under the Prevention of Money Laundering Act at premises associated with the company’s promoters, related companies, and family members. The investigation stemmed from an FIR filed by the Central Bureau of Investigation (CBI) based on a complaint from IDBI Bank on behalf of a group of banks.
The ED revealed that SOL had taken bank loans that were deceitfully diverted and siphoned off, causing a loss of around Rs 450 crore to the lender banks. The probe disclosed that the SOL promoters funneled and laundered the illicit proceeds through a complex network of shell entities and related concerns. Bogus transactions, fake invoices, and circular money movements without genuine business activities were used to move the funds. Several shell entities were established for fund routing and generating accommodation entries, often using forged or misused identity documents.
During the searches, cash amounting to Rs 10.5 lakh was seized, along with records of assets valued at nearly Rs 75 crore held by family members and their entities. Additionally, incriminating documents, digital devices, and financial records related to fund diversion and siphoning were also confiscated. The ED mentioned that the investigation is ongoing, focusing on tracing the fund trail and examining the involvement of various entities and individuals in the alleged money-laundering activities associated with the bank loan fraud.
