The Enforcement Directorate (ED), the financial investigation arm of the government, has carried out searches at multiple locations allegedly connected to a Congress MLA from Haryana and others in an ongoing money laundering investigation related to a major bank loan fraud case. Officials have raided the residential and commercial premises of Rao Dan Singh, a sitting MLA from Mahendragarh constituency as well as Allied Strips Ltd, a steel manufacturing company based in Haryana and its directors.
Locations in various parts of Haryana including Mahendragarh, Bahadurgarh and Gurugram district were covered under the operation. Premises in Delhi and Jharkhand’s Jamshedpur were also covered. Officials have scanned relevant documents and digital records during the searches. Allied Strips Ltd is under investigation for allegedly defrauding banks to the tune of Rs. 1,392 crore through contaminated loan accounts that were later declared as Non-Performing Assets.
It has been alleged that the company and its promoters had taken large loan amounts that were diverted and not used for intended purposes. Funds were also allegedly transferred to entities linked to the MLA and his family but never returned, resulting in huge losses to the banks. The Central Bureau of Investigation had filed a case against Allied Strips earlier this year. The ED is now probing the alleged money laundering angle in the case under the Prevention of Money Laundering Act (PMLA). Further investigations are underway.
