What’s Behind the ED's Crackdown on Odisha's Fake Bank Guarantee Scam?

Enforcement Directorate Targets Odisha Firm in Fraud Investigation

Bhubaneswar: The Enforcement Directorate (ED) has launched a series of searches at various locations associated with the Odisha-based company, M/s Biswal Tradelink Pvt. Ltd., and its directors in both Bhubaneswar and Kolkata, as part of an investigation into a fraudulent bank guarantee scheme.

According to sources from the ED, the operation stems from a case (0131/2024) filed by the Economic Offence Wing (EOW) in Delhi on November 11, 2024. The agency has initiated an inquiry into the fraudulent bank guarantee operation by recording an Enforcement Case Information Report (ECIR).

The ED officials executed searches under Section 17 of the Prevention of Money Laundering Act (PMLA) at three locations linked to M/s Biswal Tradelink Pvt. Ltd. and its directors in Bhubaneswar, along with one site connected to an associate of the firm in Kolkata.

During the investigation, it was revealed that M/s Biswal Tradelink Pvt. Ltd. and its associates were involved in issuing counterfeit bank guarantees for a commission of 8 percent. The investigation also uncovered that the accused had facilitated fake invoices for additional commissions.

Furthermore, the ED discovered suspicious financial activities amounting to crores of rupees in several undisclosed bank accounts belonging to the fraudulent company.

Sources from the ED noted, "The company appears to be a mere shell entity; its registered office is located in a residential property owned by a relative. No official company records were found at this address. Numerous suspicious financial transactions with various companies have been identified. Key members of the group were found using the Telegram app with 'disappearing messages' enabled, suggesting efforts to hide their communications."

In a related development, evidence seized during searches on July 24 concerning Anil Ambani's group companies has been linked to this ongoing investigation.

Notably, a bank guarantee worth Rs 68.2 crore submitted to the Solar Energy Corporation of India Limited (SECI) by M/s Biswal Tradelink Pvt. Ltd. on behalf of M/s Reliance NU BESS Limited (previously known as M/s Maharashtra Energy Generation Limited), a subsidiary of Reliance Power Limited, has been confirmed as fraudulent.

To lend credibility to this fake bank guarantee, the group allegedly used a spoofed email domain. Instead of the legitimate sbi.co.in, they utilized s-bi.co.in to send forged communications to SECI, impersonating the State Bank of India.

The ED has requested domain registration information for s-bi.co.in from the National Internet Exchange of India (NIXI).