The Directorate of Enforcement (ED), Lucknow Zonal Office, has arrested Rajeev Tyagi, partner at M/s Sai Construction and Builders, in connection with a Rs. 28 crore bank loan fraud. The arrest was made under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
Tyagi was presented before the Special Judge at the CBI Court-1 (PMLA) in Ghaziabad, where the court granted ED custody until October 24, 2024. The arrest follows an investigation initiated by the ED based on an FIR filed by the Central Bureau of Investigation (CBI) in Ghaziabad. The FIR charged M/s Sai Construction and Builders, its partners, and others with defrauding the bank using forged documents and inflated property valuations.
Alleged Fraud Scheme
According to the ED’s investigation, Rajeev Tyagi, along with associates, conspired to secure loans and financial facilities from the erstwhile Corporation Bank (now Union Bank of India after a merger) by submitting fake documents and inflated property valuations. The loans were then allegedly diverted and siphoned off through personal accounts and those of associated entities, rather than being used for the stated business purposes. This led to significant loan defaults, causing major losses to the public sector bank.
Asset Attachments
Earlier, the ED provisionally attached assets worth Rs. 14.89 crore in connection with the case. The assets include flats, commercial shops, and residential and industrial plots, all registered in the names of Rajeev Tyagi, his sons Amartya Raj Tyagi and Kanishk Raj Tyagi, as well as entities M/s SKT Garments Private Limited and M/s S K Enterprises.
Ongoing Investigation
The ED is continuing its investigation into the matter, with further developments expected as the probe progresses. This case highlights the ED’s commitment to cracking down on financial crimes and ensuring accountability in large-scale banking frauds.