Vinay Shankar Tiwari, a prominent Samajwadi Party (SP) leader and the son of the late powerful politician Hari Shankar Tiwari, was taken into custody by the Enforcement Directorate (ED) on Monday in relation to a huge bank fraud case worth ₹750 crore. Following several raids by ED teams at several properties connected to him and his business, Gangotri Enterprises Ltd., he was arrested from Lucknow.
The arrest is a component of a broader probe into financial irregularities by Vinay Shankar Tiwari and his family's business, Gangotri Enterprises. Gangotri Enterprises obtained loans totaling ₹1,129.44 crore from a consortium of seven banks, led by the Bank of India, according to ED sources. Nevertheless, around ₹750 crore of this sum was not repaid.
The Enforcement Directorate has alleged that the company diverted and misused the loan amount, violating banking norms and causing a huge loss to the banks. The money was allegedly siphoned off for personal and unauthorized purposes, leading to a case under the Prevention of Money Laundering Act (PMLA).
ED teams searched ten separate locations in India connected to Tiwari and his company on the day of the arrest. Five locations in Lucknow, two in Noida and Gorakhpur, and one each in Delhi and Mumbai were among them. Involving almost a dozen teams, the action began early in the morning.
Several significant documents, including those pertaining to properties valued at crores of rupees, were found during the raids. According to ED personnel, substantial evidence of financial misconduct was discovered within a few hours of the search operation.
Despite receiving several summons from the Enforcement Directorate, Vinay Shankar Tiwari reportedly failed to appear before investigators. This non-cooperation further raised suspicion and led to intensified action. Meanwhile, the Central Bureau of Investigation (CBI) had already registered a case against Gangotri Enterprises and its promoters based on complaints from the banks involved.
The ED took over the case under money laundering charges after the CBI’s FIR. So far, the ED has seized property worth about ₹100 crore in connection with this fraud.
One prominent character in Uttar Pradesh politics is Vinay Shankar Tiwari. In the past, he served as the representative for Gorakhpur's Chillupar constituency, which had been occupied by his father. Prior to joining the Samajwadi Party, he was elected as an MLA on a ticket from the Bahujan Samaj Party (BSP). He did not, however, win the 2022 Assembly election.
According to reports, the ED is getting ready to submit a formal chargesheet against him because his business and political background is currently being investigated. Political circles have been rocked by this arrest, and as the ED looks into the assets and financial transactions connected to Gangotri Enterprises, the inquiry is likely to go even more extensive.
