Lucknow, July 25, 2026 (Yes Punjab News)
The Enforcement Directorate (ED) has conducted searches at 10 locations across Delhi, Uttar Pradesh and Punjab in connection with an alleged ₹450-crore bank loan diversion and money-laundering case involving M/s Santosh Overseas Ltd (SOL).
The searches were carried out by the ED’s Lucknow Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002, at premises linked to the company’s promoters, family members, associated firms, facilitators and other related entities.
The investigation stems from a CBI FIR registered on the basis of a complaint filed by IDBI Bank on behalf of a consortium of lender banks. According to the ED, SOL allegedly diverted and siphoned off bank loans, causing a loss of nearly ₹450 crore to the lending banks.
The agency said its probe found that the promoters laundered the proceeds of crime through a network of shell companies, accommodation entry operators and related entities. The funds were allegedly routed using fake purchase and sale transactions, bogus invoices and circular movement of money without any genuine business activity.
The ED also alleged that several shell entities were created using forged or misused identity documents to facilitate the movement of funds. Investigators found evidence of round-tripping through multiple entities controlled by the promoters and their family members.
During the searches, the agency seized ₹10.5 lakh in cash and recovered documents relating to assets worth nearly ₹75 crore held in the names of family members and associated entities. Several incriminating documents, digital devices and financial records were also seized.
The ED said further investigation is underway to trace the money trail and examine the role of individuals and entities allegedly involved in the case.
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