BHUBANESWAR : The Enforcement Directorate (ED) on Wednesday conducted searches across four locations in Odisha and outside linked to opposition chief whip Pramila Mallik’s late brother Khirod Mallik over the alleged Rs 231 crore bank fraud case.
Sources said the central agency conducted simultaneous searches at three locations in Sambalpur and one in New Delhi during the day. Khirod was accused of swindling a whopping Rs 231 crore from various banks across Odisha and other states through his NGO, Bharat Integrated Social Welfare Agency (BISWA).
In Sambalpur, ED officers reportedly conducted searches at BISWA’s office in Danipali and a building in Modipara.
Khirod, who passed away earlier this year, was accused of availing loans through fraudulent means on the pretext of lending money to self-help groups (SHGs) and misutilising the same.
In 2021, the Central Bureau of Investigation had registered a case against Khirod and chartered accountant KC Samal for failing to repay a loan amount of Rs 10 crore which was sanctioned by Central Bank of India in favour of BISWA in 2010. CBI investigation had revealed that Khirod had cheated several other financial institutions too.
CBI had booked case against NGO
The ED then registered a case against BISWA under the prevention of money laundering act (PMLA) for swindling the money of various banks and failing to pay back the loans. The NGO was also accused of misusing foreign funds.
The Economic Offences Wing of Mumbai Crime Branch had arrested Khirod and his son Debabrata from their residence in Sambalpur’s Thakurpada area in 2019 over alleged financial irregularities. Earlier in 2014, Khirod was arrested by EOW of Odisha Crime Branch for allegedly cheating investors to the tune of Rs 10 crore. Investigation had revealed NGO BISWA was not registered as a non-banking financial institution.