ED Cracks Down on Fake Bank Guarantee Racket in Odisha, West Bengal

In a significant enforcement action, the Enforcement Directorate (ED) on Friday conducted raids across four locations in Odisha and West Bengal. This operation is part of an ongoing investigation into a sophisticated fake bank guarantee racket.

The agency carried out searches at three sites in Bhubaneswar, Odisha, and one in Kolkata, West Bengal. These raids are grounded in an Enforcement Case Information Report (ECIR) that the ED initiated after a case by the Economic Offences Wing of the Delhi Police on November 11, 2024.

The investigation, conducted under Section 17 of the Prevention of Money Laundering Act (PMLA), has unraveled a potentially wide-spanning scam involving Odisha-based Biswal Tradelink Private Limited and its directors, who allegedly issued fake bank guarantees for an 8% commission. The probe also revealed undisclosed bank accounts and suspicious transactions involving colossal sums.

ED officials disclosed that Biswal Tradelink operates merely as a paper entity, with its registered office at a residential property of a relative, lacking essential statutory records. Additionally, the investigation has uncovered connections to an earlier case concerning companies in the Anil Ambani group.

A particularly notable aspect of the fraud is the submission of a fake bank guarantee worth Rs 68.2 crore to the Solar Energy Corporation of India Limited on behalf of major companies. To bolster the facade of authenticity, conspirators used a spoofed email domain resembling that of a prominent bank's official domain.

The ED is actively pursuing leads involving domain registration details of the fraudulent domain from the National Internet Exchange of India. The investigation continues as the agency seeks to unravel and confront the criminal network behind these financial deceptions.

(With inputs from agencies.)