Enforcement Directorate Arrests Vinay Shankar Tiwari and Aide in Rs 750 Crore Bank Fraud Investigation

The Enforcement Directorate (ED) has detained former Uttar Pradesh MLA Vinay Shankar Tiwari and a senior executive from his company in connection with a money laundering probe. This investigation is linked to an alleged bank loan fraud amounting to Rs 750 crore, according to official sources. The case originates from a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI).

Tiwari, aged 59, was apprehended in Lucknow around 5 pm, while Ajeet Pandey, managing director of Gangotri Enterprises, was taken into custody in Mahrajganj district. Both arrests were made under the Prevention of Money Laundering Act (PMLA), as per the sources. Tiwari was presented before a special PMLA court and placed in judicial custody for a day.

Bank Loan Fraud Allegations

The ED plans to seek custodial remand for Tiwari and Pandey when they appear in court again on Tuesday. The arrests followed fresh searches at various locations related to the company and its promoters on Monday. Gangotri Enterprises is primarily involved in road construction, toll plaza operations, and other government contracts.

Vinay Shankar Tiwari is the son of late Hari Shankar Tiwari, a former minister from Gorakhpur. He previously represented the Chillupar assembly constituency in Gorakhpur on a Bahujan Samaj Party (BSP) ticket before joining the Samajwadi Party (SP). The main promoters of Gangotri Enterprises include Vinay Shankar Tiwari, Rita Tiwari, and Ajeet Pandey.

Financial Misconduct and Asset Seizure

The accused are alleged to have committed bank loan fraud between 2012 and 2016 against a consortium of banks led by the Bank of India (BoI). In November 2023, the ED attached assets worth approximately Rs 72 crore belonging to the company as part of this case. Raids were also conducted during that period.

The ED's statement claims that Gangotri Enterprises Ltd., along with its promoters, directors, and guarantors, fraudulently obtained credit facilities totaling Rs 1,129.44 crore from seven banks led by BoI. These credit facilities were not repaid and were allegedly misappropriated by the company and its associates.

This financial misconduct resulted in a wrongful loss of Rs 754.24 crore to the consortium of banks due to violations of banking norms. The ED continues its investigation into these allegations as it seeks further legal action against those involved.