The Enforcement Directorate (ED) arrested four individuals, including a former CEO, in connection with a money laundering investigation related to an alleged embezzlement of funds at the Vaishali Shahri Vikas Co-operative Bank Ltd, which is promoted by Rashtriya Janata Dal (RJD) MLA Alok Kumar Mehta.
The arrested individuals, identified as Vipin Tiwari, his father-in-law Ram Babu Shandilya, Nitin Mehra, and Sandeep Singh, were produced before a PMLA court and remanded in judicial custody. The arrests come after ED raids at multiple locations across Bihar, West Bengal, Uttar Pradesh, and Delhi, targeting a suspected fraud involving Rs 85 crore.
According to officials, the fraud was allegedly carried out through approximately 400 loan accounts and the disbursal of funds based on “fake or forged” warehouse receipts. The fraud investigation originated from several FIRs filed by the state police against the bank and its office-bearers.
Alok Kumar Mehta, a prominent RJD leader and former Bihar minister, is reportedly one of the promoters of the bank, with other linked entities also involved in the investigation. The probe continues as the ED seeks to uncover the full extent of the alleged money laundering activities.
