Patna: The Enforcement Directorate (ED) has filed a Prosecution Complaint (PC) before the Special PMLA Court in Patna regarding the Rs 83.5 crore fraud at Vaishali Sahari Vikash Cooperative Bank (VSVCB) in Hajipur, Bihar.
The chargesheet names several individuals, including Vipin Tiwari, the suspended CEO of VSVCB, Sandeep Kumar Singh, the proprietor of N Dimension company, Nitin Mehra, who owns Mehra Travels, and Ram Babu Shandilya, who is linked to fraudulent financial activities. Additionally, their associated firms—Rakshika Travels India LLP, Shandilya Tech Enterprises LLP, and RSDR Agri Aqua LLP—are also under investigation.
According to ED officials, the suspended CEO Vipin Tiwari and Chairman Sanjeev Kumar allegedly exploited their positions to siphon off money through fake accounts and fraudulent transactions. Bihar Police had already filed three FIRs against the accused under the relevant sections of the Bhartiya Nyay Sahita for charges of cheating and forgery. The Special PMLA Court has accepted the case on Tuesday, initiating legal proceedings.
The ED is seeking the conviction of all involved in this major financial fraud.
The investigation has revealed shocking details about the embezzlement of Rs 83.5 crore from the Vaishali Sahari Vikash Cooperative Bank (VSV), with officials bypassing rules to sanction fake loans to 383 accounts and issuing fraudulent loans totaling Rs 79.02 crore. An additional Rs 4.48 crore was misappropriated by bank staff. Fake warehouse receipts, LIC policies, and JLG records were reportedly used to cover up cash shortages.
Earlier, on January 10, 2025, the ED raided 19 locations and arrested Vipin Tiwari, Sandeep Kumar Singh, Nitin Mehra, and Ram Babu Shandilya. The fraud resulted in significant financial losses to the bank and the public. Around Rs 25 crore of the embezzled amount, transferred via RTGS/IMPS/NEFT from the fraudulent loan accounts, was traced to bank accounts linked to Nitin Mehra and his companies.
According to the ED, funds used by Vipin Tiwari were diverted for both personal and business expenditures.