ED raids RJD MLA Alok Mehta's premises in money laundering probe over bank fraud

The Enforcement Directorate (ED) conducted searches across multiple states, including Bihar, targeting premises linked to an RJD MLA, in connection with a money laundering investigation. The investigation concerns an alleged embezzlement of funds at the Vaishali Shahri Vikas (VSV) Cooperative Bank, with about Rs 85 crore reportedly misappropriated.

The ED conducted searches at 18 locations, including in Bihar, West Bengal (Kolkata), Uttar Pradesh, and Delhi. Among the locations searched were those tied to RJD MLA and former Bihar minister Alok Kumar Mehta, who is also the promoter of the VSV Cooperative Bank.

The money laundering probe follows a series of FIRs filed by the state police against the bank and its office-bearers for alleged financial misconduct. The Reserve Bank of India (RBI) had previously conducted a verification of the bank and identified the diversion of funds.

Mehta, a senior leader of the Lalu Prasad Yadav-led Rashtriya Janata Dal (RJD), represents Ujiarpur in the Bihar Assembly. He has also served as the state's minister for revenue and land reforms. No immediate comment has been made by him or the party regarding the searches.