Businessman arrested in ₹6,200 Cr bank fraud, ED conducts massive raids across 8 locations

A businessman has been arrested in a ₹6,200 crore bank fraud case involving 27 banks and financial institutions, including the State Bank of India. The Enforcement Directorate conducted searches at eight locations on Tuesday, recovering key documents and electronic evidence related to the alleged fraud. The accused, who holds directorial positions in multiple companies, is charged with misappropriating loan funds obtained from banks.

Initial findings suggest the accused secured loans under false pretenses, leading to substantial losses for the financial institutions. Investigators are examining evidence to trace the fund flow, with suspicions that a portion of the money may have been diverted abroad. Authorities are also investigating the accused’s financial dealings to identify any investments made using the funds.

In a related development, another central agency has registered cases against the accused and his company for similar offenses. The businessman is expected to be presented in court on Wednesday, with investigators seeking custody for further interrogation. Efforts are underway to uncover additional individuals and entities linked to the fraud.