ED arrests 4 in Bihar co-op bank fraud case

Four persons, including a former CEO, were arrested by the Enforcement Directorate in connection with a money laundering investigation linked to alleged embezzlement of funds at a Bihar cooperative bank, which is promoted by an RJD MLA, official sources said here on Sunday.

Two days ago, the agency raided mutiple locations in Bihar, West Bengal, UP and Delhi, as part of its probe into an alleged Rs 85 crore fraud involving the Vaishali Shahri Vikas Co-operative Bank Ltd.

The arrested accused, identified as Vipin Tiwari, his father-in-law Ram Babu Shandilya, Nitin Mehra and Sandeep Singh, were produced before a PMLA court and remanded in judicial custody.

According to an official, Rashtriya Janata Dal (RJD) leader and former Bihar minister Alok Kumar Mehta is among the promoters of the bank, apart from some other linked entities.

The money laundering investigation stems from some state police FIRs filed against the bank and its office-bearers for alleged embezzlement of funds worth about Rs 85 crore.