Co-op bank fraud case: Court takes cognizance against 4

Patna: A special court under the Prevention of Money Laundering Act (PMLA) on Tuesday took cognizance against four people and their associated firms in connection with a money laundering case linked to the Vaishali Sahri Vikash (VSV) Co-operative Bank fraud in Hajipur."The accused included Vipin Tiwari (suspended chief executive officer, VSV), Sandeep Kumar Singh (proprietor of N Dimension), Nitin Mehra (proprietor of Mehra Travels), Ram Babu Shandilya and their associated firms — Rakshika Travels India Limited Liability Partnership (LLP), Shandilya Tech Enterprises LLP and RSDR Agri Aqua LLP," the Enforcement Directorate (ED) said in a statement on Tuesday.The case involves the alleged embezzlement and subsequent money laundering of approximately Rs 83 crore, according to the ED.Last Friday, the Patna zonal office of the ED filed a prosecution complaint before the special judge (PMLA), Patna, seeking the conviction of multiple people and firms involved in the case.The ED launched its investigation based on three FIRs registered by the state police under various sections of the Indian Penal Code (IPC) related to cheating and forgery. According to the FIRs, VSV Co-operative Bank officials, including suspended CEO Vipin Tiwari and suspended chairman Sanjeev Kumar, allegedly conspired to embezzle Rs 83 crore. Investigators claimed they manipulated bank regulations on loan sanctioning and, in collusion with other bank officials, siphoned off Rs 79 crore through 383 fraudulent loan accounts while another Rs 4 crore was allegedly misappropriated in cash through other staff members.The ED had earlier conducted searches on Jan 10 at 19 locations linked to the accused. Following the raids, Vipin Tiwari, along with associates Sandeep Kumar Singh, Nitin Mehra and Ram Babu Shandilya, were arrested."The investigation revealed that the accused used forged warehouse receipts, fake LIC documents and fraudulent joint liability group (JLG) records to create fake loan accounts. These fictitious loans were used to cover up cash shortages with bank officials forging documents to facilitate the fraud. The scam resulted in financial losses for both the bank and the public," the investigating agency said."From the embezzled amount, around Rs 25 crore was transferred via RTGS, IMPS and NEFT from the fraudulent loan accounts to bank accounts associated with Nitin Mehra, his firm Mehra Travels and N Dimension. These proceeds of crime were further laundered through multiple bank accounts and used by Vipin Tiwari, the then CEO of the bank, for personal and business purposes. Tiwari also created several entities, including Rakshika Travels India LLP, Shandilya Tech Enterprises LLP and RSDR Agri Aqua LLP, through which he laundered and utilised the illicit funds," the ED said, adding that further investigation in the case is underway.