SP Leader Vinay Shankar Tiwari Arrested by ED in ₹754 Crore Bank Fraud Case

Lucknow: In a major action against financial irregularities, the Enforcement Directorate (ED) has arrested Samajwadi Party leader and former Uttar Pradesh MLA Vinay Shankar Tiwari along with Ajeet Pandey, a key managerial personnel of Gangotri Enterprises Limited, in connection with a ₹754 crore bank fraud case. The arrests were made on April 7 during extensive searches carried out in multiple locations across Uttar Pradesh and Mumbai.

According to the ED, searches were conducted at 10 premises in Lucknow, Gorakhpur, Maharajganj, Noida and Mumbai — including residential and official addresses linked to Tiwari, Pandey, and other directors of Gangotri Enterprises. The operation was aimed at tracing and unearthing proceeds of crime under the Prevention of Money Laundering Act (PMLA), 2002.

Following their arrest, both individuals were presented before the Special PMLA Court in Lucknow. The court initially sent them to 14-day judicial custody and subsequently remanded them to ED custody till April 11.

Tiwari, who is a prominent promoter of Gangotri Enterprises, is accused of being at the center of a complex web of financial misappropriation. The firm, which has undertaken numerous government infrastructure contracts, is under scrutiny for alleged collusion with directors, promoters, and guarantors to defraud a consortium of banks.

The ED investigation stems from an FIR filed by the Central Bureau of Investigation (CBI), which alleged that Gangotri Enterprises Limited (GEL) committed bank fraud amounting to ₹754 crore. The funds, as per the probe, were siphoned off through related shell entities controlled by Tiwari, his family members, and close associates.

“Many of his relatives are either directors, shareholders, or guarantors in the company GEL,” the ED said, highlighting the role of connected persons in the massive financial scandal.

The ED also confirmed the issuance of two Provisional Attachment Orders (PAO) in the case — one dated November 17, 2023, valued at ₹72.08 crore, and another dated March 18, 2024, worth ₹30.86 crore. Both orders were confirmed by the Adjudicating Authority.

“It has been found during the searches that funds were diverted under the guise of investments. Interest-free loans and advances were routed to group companies. Additionally, some high-value properties were transferred to benami or paper entities without any consideration when the loan account turned NPA,” the ED statement read.

Investigators recovered several incriminating documents during the raids, further strengthening the case against the accused.

The arrest of Vinay Shankar Tiwari — son of veteran politician Hari Shankar Tiwari — has sparked political tremors in Uttar Pradesh, with the case likely to become a key point of contention in the run-up to the Lok Sabha elections.