CBI searches BSP MLA in Rs 750 cr fraud case

The searches were carried out at Lucknow and Noida at the premises of the couple and a company associated with them, CBI sources said.

The CBI on Monday conducted searches at premises linked to BSP MLA from Chillupar in Gorakhpur Vinay Shankar Tiwari and his wife Rita Tiwari after booking them in a case of alleged bank fraud of over Rs 750 crore.

The searches were carried out at Lucknow and Noida at the premises of the couple and a company associated with them, CBI sources said.

Vinay Tiwari is the son of former minister and strongman from Gorakhpur Hari Shankar Tiwari.

“The Central Bureau of Investigation has registered a case on a complaint from Bank of India against two private companies based at Lucknow/Noida (Uttar Pradesh), its Directors and unknown others on the allegations of committing misappropriation, cheating and causing loss of Rs 754.24 crore (approx.) to the consortium of banks,” a statement issued by CBI said.

Apart from the Tiwaris, the FIR has named companies Gangotri Enterprises and Royal Marketing Pvt Ltd, and one Ajeet Pandey. “It was alleged that the private company (Gangotri Enterprises) having its corporate office at Mahanagar, Lucknow was engaged in the construction of road, bridges and flyovers etc,” CBI spokesperson R K Gaur said.

The FIR said the company availed of loans to the tune of Rs 1129.44 crore between 2007 and 2012 through a consortium led by Bank of India. In 2015, the loan was declared NPA. The banks got a forensic audit done of companies’ accounts and found diversion of loan funds through investments or unsecured loans to related parties and entities. The account was then declared a fraud and reported to the CBI.

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