The action was carried out under the Prevention of Money Laundering Act (PMLA), 2002, against several individuals, including Ashok Mittal, Saurabh Dhingra, Bharat Bhushan Mittal and Raman Singla.
The investigation stems from a CBI case alleging fraudulent enhancement of Foreign Letters of Credit (FLCs) through unauthorised SWIFT amendments without corresponding entries in the banking system. The alleged fraud is estimated to have caused losses of about Rs 155.21 crore to Oriental Bank of Commerce and a consortium of banks.
According to the ED, its probe revealed that M/s Mahesh Timber Pvt Ltd, along with associated entities and individuals in India and Singapore, allegedly diverted around Rs 195.02 crore through manipulated FLC transactions without any actual import of timber.
Customs verification reportedly found that several Bills of Entry and Bills of Lading submitted to banks were forged and fabricated. Investigators also identified a network of companies that allegedly created a false trail of timber imports from Singapore to India, enabling the fraudulent transfer of funds abroad.
The ED stated that key individuals linked to the case held management positions across multiple entities involved in the transactions. The agency further alleged that proceeds of crime were layered and diverted through various channels with the assistance of several associates.
During the searches, officials recovered sale deed agreements and seized incriminating documents and electronic devices. Further investigation is underway to trace assets and proceeds generated from the alleged bank fraud.
