Patna, Jan 10 (IANS) The Enforcement Directorate (ED), on Friday, raided 16 locations in four states linked to Rashtriya Janata Dal (RJD) MLA and former Minister Alok Mehta.
The raids are related to an alleged banking scam tied to the Vaishali Urban Cooperative Bank, which Mehta and his family have been associated with for over three decades.
The ED conducted simultaneous raids in Bihar, Kolkata (West Bengal), Delhi, and Uttar Pradesh, targeting 16 locations linked to Alok Mehta and associates. Large police deployment and a detailed probe are underway, particularly at Alok Mehta’s official Patna residence.
Sources have said that Alok Mehta is suspected of being involved in an alleged withdrawal of approximately Rs 85 crore through fraudulent practices, including loans issued on fake documents and misuse of bank authority.
The alleged fraud spans 10-20 years, involving repeated violations of banking norms. Loans were issued in the names of farmers using fake documents, ignoring standard procedures.
Alok Mehta and his relatives are connected with two companies — Lichchhavi Cold Storage Pvt Ltd and Mahua Cooperative Cold Storage — and are facing allegations of embezzling Rs 60 crore.
Loans worth over Rs 30 crore were granted using fake LIC bonds and identity documents.
Alok Mehta’s father, Tulsidas Mehta, established the Vaishali Urban Cooperative Bank 35 years ago. Alok Mehta chaired the bank from 1995 to 2012, during which the alleged irregularities began.
In 2012, Alok Mehta handed over control to his father, seemingly to distance himself from the unfolding controversies. The current chairman of the bank is Sanjeev Mehta, nephew of Alok Mehta.
Alok Mehta, a prominent RJD leader and former Revenue and Land Reforms Minister during the Grand Alliance government, reportedly used political influence to control the bank.
In 2015, similar irregularities prompted the RBI to shut down the bank’s financial operations, with allegations against Tulsidas Mehta. The bank received its RBI license in 1996, but political involvement is said to have influenced its operations negatively.
This case raises questions about the misuse of cooperative banks by political families, the lapses in regulatory oversight, and the exploitation of rural banking institutions for personal gain. If the allegations hold true, it may lead to significant legal consequences for Alok Mehta and his family.
–IANS
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