The Enforcement Directorate (ED) on Monday conducted search operations at multiple premises linked to real estate firm Mantri Developers Private Limited and its directors in Bengaluru as part of a money laundering investigation.
Raids under PMLA provisions
Officials said the searches were carried out under Section 17 of the Prevention of Money Laundering Act (PMLA). The operation began around 8 am, led by teams from the ED’s Delhi office.
Multiple residential and office locations associated with the company and its directors were simultaneously searched to gather evidence related to suspected financial irregularities.
Focus on financial records and digital data
During the raids, investigators examined financial documents, digital devices and other records to trace the movement of funds and identify possible violations of the law.
Officials indicated that the action forms part of a broader investigation into alleged laundering of illicit funds through corporate entities.
Link to ₹597 crore scam
The probe is reportedly connected to an earlier case involving alleged embezzlement of ₹597 crore linked to government funds. The amount was meant to be kept as fixed deposits but was allegedly diverted without authorisation.
The ED had previously conducted searches on March 12 across 19 locations in Chandigarh, Punjab, Haryana and Bengaluru, during which it froze around 90 bank accounts and seized incriminating digital and documentary evidence.
Wider network under scanner
The investigation covers several individuals and entities, including former bank employees, their associates, and beneficiary firms. Authorities are examining the role of shell companies and other business entities in the alleged diversion of funds.
The case originates from an FIR registered by the State Vigilance and Anti-Corruption Bureau in Panchkula in February 2026, following discrepancies in government account balances maintained with private banks.
Investigation ongoing
Officials stated that further action will depend on the findings from the ongoing searches and analysis of seized material. The ED is continuing its probe to establish the full extent of the alleged money laundering network.