Archive · 26 Jul 2026
ED searches in 3 states over Rs 450 crore loan fraud
The Enforcement Directorate (ED) conducted searches in Delhi, Uttar Pradesh, and Punjab as part of an investigation into a company called M/s Santosh Overseas Ltd (SOL).
The ED believes that SOL took bank loans and then illegally moved and hid the money, causing a loss of Rs 450 crore to the banks.
They found evidence that the company's leaders used fake companies and false documents to move the money around.
The ED seized cash, records of valuable assets, and other important documents during their searches.
The investigation is still ongoing, and the ED is looking into how the money was moved and who was involved.
The ED conducted searches at 10 premises in Delhi, Uttar Pradesh, and Punjab in connection with an alleged bank loan diversion and money-laundering case involving M/s Santosh Overseas Ltd (SOL).
The investigation was initiated based on an FIR registered by the CBI following a complaint from IDBI Bank on behalf of a consortium of banks.
SOL allegedly diverted and laundered bank loans amounting to Rs 450 crore through a complex network of shell entities and fake transactions.
The ED seized cash amounting to Rs 10.5 lakh, records of assets valued at nearly Rs 75 crore, and various incriminating documents during the searches.
The ED is examining the trail of funds and the role of various entities and individuals in the alleged money-laundering activities linked to the bank loan fraud.
- Who
- Enforcement Directorate (ED), M/s Santosh Overseas Ltd (SOL), IDBI Bank, Consortium of Banks
- What
- Searches conducted in connection with an alleged bank loan diversion and money-laundering case
- When
- Searches conducted on Saturday
- Where
- Delhi, Uttar Pradesh, Punjab
- Why
- To investigate the alleged diversion and laundering of bank loans amounting to Rs 450 crore
ED's Perspective
Accused's Perspective
Nature of the Case
ED's Perspective
The ED alleges that the promoters of SOL diverted and laundered bank loans through a complex network of shell entities and fake transactions.
Accused's Perspective
The accused may argue that the transactions were legitimate business activities and that the allegations are unfounded.
Use of Shell Entities
ED's Perspective
The ED claims that shell entities were created solely for routing funds and generating accommodation entries, using forged or misused identity documents.
Accused's Perspective
The accused may claim that the shell entities were part of legitimate business operations and that the use of identity documents was proper.
Evidence and Seizures
ED's Perspective
The ED has seized cash, records of assets, and incriminating documents as evidence of money laundering and fund diversion.
Accused's Perspective
The accused may argue that the seized items do not prove any wrongdoing and that the evidence is circumstantial.
- Agency Conducting Searches
- Enforcement Directorate (ED)
- States Involved
- Delhi, Uttar Pradesh, Punjab
- Number of Premises Searched
- 10
- Amount of Loan Diversion
- Rs 450 crore
- Cash Seized
- Rs 10.5 lakh
- Assets Recovered
- Rs 75 crore
- Act Under Which Searches Conducted
- Section 17 of the Prevention of Money Laundering Act (PMLA), 2002
- Initiating Agency
- Central Bureau of Investigation (CBI)