ED Makes First Arrest In Anil Ambani-Linked Rs 3000-Crore Loan Fraud Probe

Partha Sarathi Biswal, Managing Director of Biswal Tradelink Pvt. Ltd., has been arrested by the Enforcement Directorate in a money laundering case. The investigation involves fraudulent bank guarantees and connections to the Reliance Group.

The Enforcement Directorate (ED) on Saturday arrested Partha Sarathi Biswal, the Managing Director of Biswal Tradelink Pvt. Ltd. (BTPL), based in Bhubaneswar. This arrest is linked to a money laundering case involving fake bank guarantees. The ED's action follows the issuance of summons and a lookout circular against industrialist Anil Ambani.

"The Directorate of Enforcement (ED) has arrested Shri Partha Sarathi Biswal, Managing Director of M/s Biswal Tradelink Pvt. Ltd. (BTPL), Bhubaneswar, on 1st August in money laundering case," the central agency said in a statement.

On Friday, the ED carried out searches at four locations, including three in Bhubaneswar and one in Kolkata. The investigation revealed that BTPL submitted fraudulent bank guarantees worth Rs 68.2 crore for a Solar Energy Corporation of India (SECI) tender. In return, they allegedly received Rs 5.40 crore from Reliance Power Ltd.

Fake Documents and Bank Accounts

The agency found evidence of fake documents and email IDs purportedly from certain banks, including SBI. BTPL, established in 2019, maintained several undisclosed bank accounts and conducted transactions exceeding its declared turnover. Violations of the Companies Act were also discovered during the investigation.

The case began with an FIR filed by Delhi Police last year against BTPL and its directors for submitting fake bank guarantees to SECI. The ED stated that no statutory records were found at the company's registered address, such as books of accounts or shareholders' registers. Dummy directors were reportedly used to sign documents.

Broader Investigation into Reliance Group

This development comes shortly after a lookout circular was issued against Anil Ambani concerning a bank fraud case. The ED is probing the alleged diversion of approximately Rs 3,000 crore in loans given to Reliance Group companies by YES Bank between 2017 and 2019.

The agency discovered that YES Bank promoters received payments just before these loans were sanctioned, suggesting a quid pro quo arrangement. This broader investigation aims to uncover any irregularities or illegal activities associated with these financial transactions.

The arrest of Partha Sarathi Biswal marks a significant step in the ongoing investigation into financial misconduct involving BTPL and other entities connected to this case.