The Enforcement Directorate (ED) conducted simultaneous raids at nearly ten locations across the country connected to Samajwadi Party leader and former MLA Vinay Shankar Tiwari on Monday. According to the information, the searches spanned key cities, including Gorakhpur, Lucknow, Noida, Maharajganj, Delhi, and Mumbai, in what appears to be a widening investigation into alleged financial irregularities. The raids were conducted under section 17 of the Prevention of Money Laundering Act (PMLA) in the case of the alleged bank fraud of around Rs 700 crore linked to Gangotri Enterprises Limited.

The action comes in the wake of multiple complaints filed by the Bank of India and other financial institutions accusing Gangotri Enterprises of diverting sanctioned loans to other entities through illegal means. The loans, allegedly misused and siphoned off, have raised serious concerns about deliberate attempts to defraud banks. Earlier, the Central Bureau of Investigation (CBI) had registered a case and begun a probe into the matter.

Now, taking it forward, the ED has filed a case under the Prevention of Money Laundering Act (PMLA) and intensified the investigation. According to officials, during the investigation, it was revealed that the funds acquired from banks were illegally invested elsewhere, instead of being used for the intended business purposes. 

Who is Vinay Shankar Tiwari?

Vinay Shankar Tiwari, a prominent political figure and former MLA, is the son of late Hari Shankar Tiwari—a powerful minister and influential personality from Gorakhpur. He has been associated with Gangotri Enterprises, a company that has long been under scrutiny. In 2023, Bank of India had alleged that the company diverted over Rs 700 crore worth of loans to other shell firms. This triggered a series of investigations by both the CBI and ED.

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