The Enforcement Directorate (ED) team has raided Purvanchal Urban Co-operative Bank in Ghazipur, Uttar Pradesh. The team has arrested the former promoter of the bank Rambabu Shandilya. The ED team reached the bank in Bihar number vehicles. There was a stir throughout the day due to the team's actions. The bank is accused of embezzling crores of rupees. RBI has also canceled the license of the bank.

In the name of Purvanchal Urban Co-operative Bank, the hard-earned money of the common people, which was around Rs 40 crore, was misappropriated by the promoter of the bank in such a way that even the Reserve Bank was forced to cancel the license. A case was also filed against many people including former enforcement. However, later the Reserve Bank has so far returned about Rs 12 crore to depositors up to Rs 5 lakh.

Former promoter of the bank arrested

Taking major action, ED arrested former promoter Rambabu Shandilya late on Friday night and took him away. Urban Co-operative Bank in Ghazipur whose license has already been canceled by the Reserve Bank of India in case of fraud. On Friday, at the main branch of the same bank, the ED team in a vehicle with Bihar number arrested the former promoter of the bank, Rambabu Shandilya, after a day-long confidential investigation. The arrest was confirmed by Superintendent of Police Dr. Iraj Raja. He told that this arrest has been made in money laundry case.

Loan of Rs 43 crore given in 2023

Purvanchal Cooperative Bank Limited was established in 1989 by Rambabu Shandilya, a former district government advocate. Whose main branch is at Shastri Nagar court. Its branches were also opened in Maharajganj, Jangipur, Saidpur, Mohammadabad. Initially everything in the transactions of this bank was fine.

But in the year 2023, a loan of about Rs 43 crore was given by this bank ignoring the rules. When RBI got this bank investigated, it came to light that wrong information had also been sent by the bank to RBI. Because on May 31, 2023, SLR securities worth Rs 1 crore 97 lakh were shown whereas it was zero.

Rs 23 crore stuck

In view of all this, RBI had banned the deposits and withdrawals of this bank. However, after this ban was imposed, the Reserve Bank returned about Rs 12 crore 63 lakh to 912 account holders, in whom there were deposits of Rs 5 lakh or less. But at present, around Rs 23 crore of 1691 account holders is still stuck in the bank.

On the investigation report of RBI in 2023, former promoter of Purvanchal Co-operative Bank Limited Ram Babu Shandilya, former CEO Vivek Pandey, management committee, auditor M/s Vijay K. A case was registered against Sharma and Company, bank proprietor and related party and firm in the city police station on 30 August 2023. The operative cell Varanasi is investigating this entire episode.

ED team raided

Regarding this entire matter, officials had come to the main branch of the bank in two Bihar number vehicles and Lucknow number vehicles. Apart from this, no one was allowed inside the bank during this investigation, due to which it was not known throughout the day what kind of raid or investigation process was going on.

At the same time, information about the investigation action by SIT was also received late in the evening. But late in the night, when the ED completed the investigation and informed the police, Superintendent of Police Dr. Iraj Raja told that this action was taken by the ED team. He told that the team has arrested the former promoter of the bank Rambabu Shandil and taken him with them.