ED conducted Search Operations under PMLA 2002 in case of Kotak Mahindra Bank fraud

The Directorate of Enforcement (ED) conducted search operations under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 on 02.01.2024 at three locations in Patna (residential and business premises) related to M/s Mohan Alankar Jewellers and Co., and arrested Sourav Kumar (son of the firm’s proprietor) on 04.01.2024 in the case of Kotak Mahindra Bank fraud.

Sourav Kumar was brought before the Hon’ble CJM Court in Patna and sent to judicial custody till January 12, 2024.

The ED launched an investigation based on an FIR filed by Gandhi Maidan P.S. Patna under various sections of the IPC, 1860. The charge sheet alleges that fraudulent transactions totalling Rs.31.93 Crore were executed from the bank account of the Competent Authority for Land Acquisition (CALA) and District Land Acquisition Officer (DLAO), with funds syphoned off using shell accounts and dummy entities, resulting in a significant loss to the government.

An ED investigation found that Rs.5.34 Crore (approx.) of fraudulent transactions were transferred from a government account to a bank account held by M/s Mohan Alankar Jewellers and Co. at Kotak Mahindra Bank, Boring Road Branch, Patna.

The ED inquiry found that Sourav Kumar, who controls the firm’s business activities, collaborated with the accused to syphon off government funds and possess some of them.

The search resulted in the gathering of incriminating details/ documents and recovery of proceeds of crime of approx. Rs.1.38 Crore (cash of Rs.11,51,500 and Jewellery worth Rs.1.26 Crore).

Further investigation is underway.