Priyanka Tiwari
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The Enforcement Directorate (ED) has taken significant action against Samajwadi Party (SP) leader and former MLA Vinay Shankar Tiwari in connection with a massive bank loan fraud. ED officials conducted raids at around 10 locations tied to Tiwari's firm, Gangotri Enterprises Limited, on Monday morning across Uttar Pradesh and Mumbai.
The ED's probe relates to a ₹700 crore scam involving fraudulent bank loans and fund diversion.
Widespread Raids Across Multiple Cities
Raids were carried out at Tiwari’s premises in Lucknow, Gorakhpur, and Mumbai, focusing primarily on the offices and properties linked to Gangotri Enterprises. ED sources revealed that a detailed charge sheet is ready and will soon be submitted to the court.
Details of the Financial Scam
According to the ED's findings, Gangotri Enterprises Limited and its associated promoters, including Tiwari, secured credit worth ₹1129.44 crore from a consortium of seven banks led by Bank of India. Instead of repaying the loans, they allegedly diverted funds to other companies, causing a loss of ₹754.24 crore to the banking consortium.
Previous Action and Asset Seizures
In November 2023, the ED had seized assets worth ₹72.08 crore linked to Vinay Shankar Tiwari.
The agency’s zonal office in Uttar Pradesh also seized 27 properties in Gorakhpur, Maharajganj, and Lucknow.
These include agricultural land, commercial properties, residential plots, and complexes.
Background: CBI Initiated the Case
The case originated from a complaint filed by the affected banks. Following the Central Bureau of Investigation’s (CBI) registration of a case, the ED launched its own probe under the Prevention of Money Laundering Act (PMLA) against all directors and promoters, including Tiwari.
What’s Next?
With evidence in hand and the charge sheet prepared, the ED plans to present its findings in court soon. The crackdown highlights growing scrutiny on financial fraud and the misuse of credit facilities by politically-linked business entities.
