India's Enforcement Directorate raided eight locations in Maharashtra and Andhra Pradesh on Wednesday in a money laundering probe stemming from a Rs 152 crore ($18 million) bank fraud case involving businessman Ramana Rao Bolla and former bank manager Nutan Rakesh Singh.
The searches targeted premises linked to Bolla, Singh and associated entities in Mumbai, Nagpur, Vijayawada and other areas, agency officials said. The case originates from a 2022 complaint by Punjab National Bank's Vijayawada branch alleging fraud through fake import orders and fictitious transactions.
Agency teams seized documents, digital devices and incriminating materials during the operation, the officials said. The probe examines the flow of defrauded funds into shell companies and benami assets.
The fraud involved Bolla's firm, Bolla Enterprises, securing credit facilities worth Rs 152 crore from the bank between 2018 and 2021, according to the complaint filed with the Central Bureau of Investigation. Singh, then the branch's chief manager, approved the loans without due verification, the officials said.
Enforcement Directorate Additional Director Rohit Singhal said in a statement, "The searches uncovered evidence of layered transactions to disguise proceeds of crime. Further action will follow forensic analysis."
The case was registered under the Prevention of money laundering Act after the CBI filed a charge sheet in 2023, the officials said. Bolla and Singh face charges of cheating and criminal conspiracy.
Officials from the Enforcement Directorate were not immediately available for comment on potential arrests. The agency expects to file a prosecution complaint once the evidence is collated.