In a significant crackdown on financial crime, the Enforcement Directorate (ED) on Monday, April 7, conducted multiple raids at locations linked to Samajwadi Party (SP) leader and former MLA Vinay Shankar Tiwari. The action was taken under the provisions of the Prevention of Money Laundering Act (PMLA) in connection with a ₹754.24 crore bank fraud case involving Gangotri Enterprises Ltd, a company promoted by Tiwari.

What Triggered the ED Action?

The ED's investigation stems from an alleged bank fraud where Gangotri Enterprises Ltd, promoted by Vinay Shankar Tiwari, availed credit facilities worth ₹1,129.44 crore from a consortium of seven banks led by the Bank of India. Of this, approximately ₹750 crore remains unpaid and is suspected to have been misappropriated and siphoned off by the company’s promoters and directors.

Scale and Locations of the Raids

The ED carried out raids at 10 different locations including:

• Five locations in Lucknow

• Two locations each in Noida and Gorakhpur

• One location each in Delhi and Mumbai

The raids were executed early in the morning, involving more than a dozen ED teams, and were aimed at uncovering incriminating financial records and unaccounted property.

Repeated Summons Ignored by Tiwari

According to sources, Vinay Shankar Tiwari repeatedly ignored several summons issued by the ED. Despite being asked to present himself before the agency, he did not appear, prompting the authorities to initiate a comprehensive raid across states.

Findings of the Raid

During the raid, ED teams reportedly recovered several property documents worth crores of rupees, especially in cities like Lucknow, Gorakhpur, and Noida. These documents are now being scrutinised to understand the full extent of the alleged financial misappropriation.

So far, the ED has seized properties worth ₹100 crore, and the investigation is expected to widen further as more leads are uncovered.

CBI's Involvement and FIR

The Central Bureau of Investigation (CBI) had earlier filed a First Information Report (FIR) against the promoters, directors, and guarantors of Gangotri Enterprises Ltd and its associate companies, based on complaints lodged by the bank consortium.

This FIR formed the foundation for the ED’s money laundering probe. According to the FIR, the company violated banking norms and was involved in gross diversion of funds.

Who Is Vinay Shankar Tiwari?

Vinay Shankar Tiwari is a prominent politician from Uttar Pradesh, known for his association with the late Hari Shankar Tiwari, a well-known political figure and former minister. He served as an MLA from the Chillupar constituency in Gorakhpur, previously representing the Bahujan Samaj Party (BSP) before switching to the Samajwadi Party (SP).

However, he lost the 2022 Assembly elections and is currently under scrutiny for his alleged involvement in this massive bank fraud.

About Gangotri Enterprises Ltd

Gangotri Enterprises is a construction and infrastructure company headquartered in Uttar Pradesh. It was promoted by Vinay Shankar Tiwari, along with Rita Tiwari and Ajeet Pandey, and availed a working capital loan (CC limit) of over ₹1,100 crore.

The company failed to service these loans, leading to a huge financial loss to the lending banks. The ED suspects that the loan amount was used for personal gains and unrelated business activities.

Legal Consequences Ahead

With serious charges like money laundering, criminal breach of trust, and fraud, Vinay Shankar Tiwari and his associates face possible imprisonment, property confiscation, and financial penalties. The PMLA allows for stringent punishment, and with property worth crores already seized, this case is expected to make headlines for months to come.

Political and Public Impact

The case is likely to have far-reaching political implications, especially in Uttar Pradesh, where law and order, corruption, and misuse of political power are recurring issues in elections and public discourse. The association of a senior SP leader in such a massive fraud case could impact the image of the party ahead of the general elections.

Next Steps in the Investigation

The ED is expected to:

• Interrogate Vinay Shankar Tiwari and other promoters of Gangotri Enterprises.

• Track the money trail of the ₹754 crore suspected to be siphoned.

• Attach more properties if the diverted funds are found to be invested in real estate or benami assets.

• Possibly seek judicial custody of those involved based on fresh evidence gathered.

Conclusion

The ₹754 crore bank fraud case involving Gangotri Enterprises Ltd is now one of the major financial scams linked to political figures in recent years. With the ED tightening its probe and CBI already in the loop, the legal noose around Vinay Shankar Tiwari appears to be tightening.

This case is a reminder of the growing crackdown on financial irregularities, especially those involving public funds and politically exposed persons. More revelations are expected as the investigation progresses, potentially exposing larger networks of corruption and financial misconduct.

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