ED Cracks Down on Mumbai's Rs 142-Crore Bank Fraud

The Enforcement Directorate in Mumbai conducted searches at multiple locations concerning a Rs 142-crore bank fraud involving M/s Rialto Exim and Pushpak Group. The investigation, initiated from a CBI FIR, uncovered significant financial misconduct including circular transactions and foreign purchases. Further probing into the case continues.

The Enforcement Directorate (ED) has raided 12 locations across Mumbai in connection with a Rs 142-crore bank fraud probe, the agency confirmed on Saturday. The investigation stems from an FIR filed by the Central Bureau of Investigation (CBI) against M/s Rialto Exim Private Limited, M/s Pushpak Bullion Private Limited, and Chandrakant Patel, among others, under the Indian Penal Code and Prevention of Corruption Act.

According to a statement released by the ED, the searches, conducted on Thursday, led to the discovery of immovable and movable assets (bank funds), along with other incriminating documents. The case involves allegations of causing wrongful losses to the Central Bank of India and Bank of India amounting to Rs 142.72 crore.

The investigation revealed that M/s Rialto Exim, affiliated with Pushpak Group, engaged in circular transactions with related entities without genuine trade activities, totaling over Rs 500 crore. Further findings include dealings with Dubai-based dummy entities and Pushpak Group’s foreign entity acquiring a U.S. mine. More than Rs 84 crore in cash deposits during demonetisation tied to the group were also discovered, prompting continued investigations.