In a major breakthrough, the Enforcement Directorate (ED) has taken significant action in the ₹100 crore scam involving the Vaishali Urban Development Co-operative Bank. The agency conducted extensive raids in multiple cities, including Varanasi, and arrested key individuals associated with the case. The Vaishali Urban Development Co-operative Bank was founded 35 years ago by Tulsidas Mehta, the father of RJD MLA Alok Mehta.
Alok Mehta served as the bank’s chairman from 1995 to 2012. However, in 2015, the RBI halted the bank’s financial operations due to allegations of large-scale embezzlement. In June 2023, the RBI report unveiled a massive scam, leading to the registration of three FIRs in Hajipur and the ED taking over the investigation.
Arrests Made in Multiple Locations
The ED arrested the bank’s CEO, Vipin Tiwari, from Varanasi, along with his father-in-law, Rambabu Shandilya, from Ghazipur, Uttar Pradesh. Additionally, Nitin Mehra from Delhi, Sandeep Singh from Kolkata, and Pankaj Tiwari were also taken into custody. Rambabu Shandilya and Vipin Tiwari are relatives of Alok Mehta.
On Saturday, Nitin Mehra, Rambabu Shandilya, and Pankaj Tiwari were produced before the ED court, which sent them to judicial custody. Meanwhile, the agency is interrogating CEO Vipin Tiwari and Sandeep Singh, who were apprehended late Saturday evening. Both are set to appear in court on Sunday.
Search for Bank Chairman Sanjeev Kumar
The ED is intensifying its efforts to locate and arrest Sanjeev Kumar, the chairman of the bank, who is also a key accused in the scam. Raids are ongoing to trace his whereabouts.
Accusations and Background
The scam came to light in June 2023 following an RBI report, which revealed massive irregularities in the bank’s operations. Allegations suggest that Vipin Tiwari’s father-in-law, Rambabu Shandilya, was involved in a separate scam worth ₹30 crore at Purvanchal Cooperative Bank.
The Vaishali Urban Development Co-operative Bank, established 35 years ago, has been under scrutiny for financial mismanagement for years. The bank was founded by Late Tulsidas Mehta, father of RJD MLA Alok Mehta. Alok Mehta served as the chairman of the bank from 1995 to 2012, during which his family maintained control over its management.
In 2015, the Reserve Bank of India (RBI) shut down the bank’s financial operations following allegations of embezzlement. Despite prior investigations, the latest scam underscores deeper issues in the bank’s administration.
ED Raids Continue Across Locations
Raids were conducted on Friday and Saturday at 19 locations linked to RJD MLA Alok Mehta and his associates. These locations spanned across Patna, Varanasi, Delhi, Kolkata, and other cities. During the raids, ED recovered two dozen land deeds, a dozen passbooks, and documents related to cold storage and warehouses.
Sources indicate that the ED is meticulously collecting evidence against Alok Mehta. The recovered documents are expected to strengthen the agency’s case. Once the evidence is consolidated, Alok Mehta could be summoned for questioning at the Patna ED office.
Given his proximity to RJD chief Lalu Yadav and Mehta’s prominence within the party, this development could have broader implications for the political landscape of the Rashtriya Janata Dal (RJD). Discussions are rife that Mehta himself could come under the scanner as the investigation deepens, potentially leading to further action from the authorities.
A Long Trail of Allegations
This is not the first time the Vaishali Urban Development Co-operative Bank has been embroiled in controversy. In 2015, similar allegations of financial irregularities led to action against the bank. However, the current scam is significantly larger in scale, with multiple individuals and entities under investigation.
What’s Next?
As the ED continues its probe, all eyes are on the agency’s next steps. With the arrests of key players and ongoing raids, the investigation is expected to unravel further details of the ₹100 crore scam. The legal proceedings in the coming days will be critical in determining accountability and justice in this high-profile financial fraud case.
