ED Uncovers Massive Fake Bank Guarantee Racket in Odisha
The Enforcement Directorate is investigating an Odisha-based company for allegedly running a fake bank guarantee issuance scheme. The company reportedly provided false assurances to firms, including a Rs 68 crore guarantee to a Reliance Group subsidiary. Investigations reveal multiple suspicious transactions and the use of fraudulent bank domains.
- Country:
- India
The Enforcement Directorate (ED) launched a series of searches on Friday targeting an Odisha-based company suspected of orchestrating a vast fake bank guarantee racket affecting major business groups. Official sources revealed that the company allegedly provided a fake bank guarantee worth Rs 68 crore for a subsidiary of the Reliance Group.
The ongoing money laundering investigation under the Prevention of Money Laundering Act (PMLA) began after a 2024 FIR by the Delhi Police Economic Offences Wing (EOW). The ED carried out searches at various company premises in Bhubaneswar and an associated entity in Kolkata.
Sources allege the company issued fake bank guarantees for an 8 percent commission, even impersonating the State Bank of India through a deceptive email domain. Authorities have traced multiple suspicious financial transactions, identifying the company as a 'paper entity' operating from a relative's residential property.
(With inputs from agencies.)
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