ED conducts raids at seven sites in Jharkhand and Odisha amid JSCB fraud investigation

The Enforcement Directorate (ED) rolled out a series of search and seizure operations on Friday, hitting seven different locations spread across Jharkhand and Odisha. The moves are part of a wider probe into what officials say is a massive fraud at the Jharkhand State Co‑operative Bank (JSCB), specifically its Seraikela branch.

According to the agency, the raids were carried out under Section 17 of the Prevention of Money‑Laundering Act (PMLA). In plain terms, this gives the ED the power to seize documents, electronic records and any other material that might shed light on the alleged illegal proceeds.

At the centre of the investigation is businessman Sanjay Kumar Dalmia, who is alleged to have colluded with then‑bank officials to siphon off funds. While the exact mechanics of the scam are still being pieced together, sources say the scheme involved inflating loan amounts and diverting the money for personal use.

“The searches are aimed at gathering documentary and other material evidence relevant to the money‑laundering investigation,” a senior ED official, speaking on condition of anonymity, told reporters. The official added that the raids were coordinated with state police and local security forces, ensuring that no stone was left unturned.

ED’s Ranchi zone unit has been digging into the case for weeks now, following a tip‑off that pointed to suspicious transactions at the Seraikela branch. The team reportedly examined ledger books, loan files, and even email correspondence to trace the flow of money.

While the agency has not disclosed the exact number of assets seized, it hinted that a “substantial amount of documentary evidence” was recovered, which could be pivotal in building a money‑laundering case against the accused.

For now, Sanjay Kumar Dalmia and several former JSCB officials remain under the scanner. The investigation is still in its early stages, and the ED says it will continue to pursue leads, wherever they may lead, to ensure that any illicit proceeds are brought back into the legal fold.

As the story develops, observers will be watching closely to see whether further raids are planned in other states, and how the alleged fraud might impact the broader cooperative banking sector in India.