ED Raids Unravel Odisha's Fake Bank Guarantee Racket

The Enforcement Directorate conducted searches against Odisha-based Biswal Tradelink for its alleged fake bank guarantee racket. A forged Rs 68 crore guarantee was issued for Reliance, leading to an ED investigation. The company used deceptive email domains and undisclosed accounts to conduct suspicious transactions.

The Enforcement Directorate (ED) on Friday conducted multiple raids against an Odisha-based company over allegations of operating a fake bank guarantee issuance racket. This included a Rs 68 crore guarantee for a Reliance Group subsidiary, according to official sources.

Filed under the Prevention of Money Laundering Act (PMLA), the case targets Biswal Tradelink of Bhubaneswar. The ED's probe follows a Delhi Police Economic Offences Wing FIR from November 2024.

The ED executed searches at three company locations in Bhubaneswar and a related entity in Kolkata. It unearthed a scheme where the company issued fake bank guarantees for an 8% commission. The guarantee involved was linked to Reliance NU BESS Limited and the Solar Energy Corporation of India Limited.