January 10, 2025: The Enforcement Directorate (ED) on Friday conducted searches across 18 locations in four states as part of a money laundering investigation linked to an alleged Rs 85 crore fraud involving the Vaishali Shahri Vikas (VSV) Cooperative Bank.

The raids targeted properties associated with Rashtriya Janata Dal (RJD) MLA and former Bihar minister Alok Kumar Mehta, along with those of other bank officials and customers, according to sources. The searches were carried out in Bihar, West Bengal, Uttar Pradesh, and Delhi.

Mehta, 58, a senior politician of the Lalu Prasad Yadav-led RJD and MLA from Ujiarpur, had previously served as Bihar’s minister for revenue and land reforms. He is reported to be the promoter of the VSV Cooperative Bank, which is under scrutiny for alleged embezzlement of funds.

The ED’s investigation stems from multiple police FIRs accusing the bank and its office-bearers of financial mismanagement. The allegations include the opening of approximately 400 fake accounts, through which funds were allegedly diverted using fraudulent LIC receipts and warehouse documents.

The searches, which began Friday morning, were ongoing at the time of reporting.

The RJD has yet to issue a statement regarding the ED's actions. Meanwhile, the investigation marks another instance of political and financial controversies engulfing cooperative institutions in Bihar.

Further details are awaited as the raids progress.