ED Arrests Deepak Singla in ₹155 Crore Mahesh Timber Bank Fraud Case

New Delhi : The Directorate of Enforcement (ED), Chandigarh Zonal Office, has intensified its crackdown on alleged financial fraud and money laundering linked to M/s Mahesh Timber Pvt. Ltd. and its directors. Acting under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the agency conducted extensive search operations on May 18, 2026, at multiple premises associated with Deepak Singla, Ayush Tiwari, Amreek Singh Gill and other linked individuals in Delhi and Goa.

The case pertains to an alleged bank fraud involving wrongful losses of approximately Rs 155.21 crore to Oriental Bank of Commerce and a consortium of banks. Officials stated that the searches led to the recovery of several incriminating documents, digital evidence, unaccounted cash and foreign currency suspected to be linked to the proceeds of crime.

ED Raids Multiple Locations

According to officials, the searches were carried out simultaneously at various residential and business premises connected to the accused persons. During the operation, ED officials reportedly seized important financial records, electronic devices, digital storage materials and other documents believed to be crucial for the ongoing investigation.

The agency also recovered unaccounted cash amounting to Rs 27.75 lakh along with 6,000 Singapore Dollars during the raids. Investigators suspect that the seized materials may reveal the flow of funds, shell entities and the alleged diversion of bank loans.

Allegations of Massive Loan Fraud

The investigation revolves around allegations that M/s Mahesh Timber Pvt. Ltd., along with its directors and associated entities, fraudulently obtained loans from banks and later diverted or misused the sanctioned funds, causing substantial financial losses to the lending institutions.

Sources familiar with the case indicated that the accused allegedly manipulated financial transactions, created misleading records and engaged in activities that violated banking norms and financial regulations. The Enforcement Directorate is now examining the money trail to identify how the funds were routed and utilized.

Deepak Singla Arrested Under PMLA

Following the searches, the ED arrested Deepak Singla on May 18, 2026, under the provisions of the Prevention of Money Laundering Act. After the arrest, the accused was produced before the Rouse Avenue Court in New Delhi, from where the agency obtained transit remand.

Subsequently, Deepak Singla was presented before the Special PMLA Court in Panchkula, which granted the Enforcement Directorate six days of custodial remand for further interrogation and investigation into the alleged money laundering activities.

Officials stated that investigators questioned the accused regarding financial transactions, alleged diversion of funds, linked entities and suspicious assets connected to the case.

Sent to Judicial Custody

After completion of custodial interrogation, the Special PMLA Court on May 26, 2026, sent Deepak Singla to judicial custody for 14 days.

The Enforcement Directorate is continuing its probe and is expected to further examine the role of other individuals and entities linked to the alleged fraud network. Officials have not ruled out additional arrests or attachment of properties as the investigation progresses.

Focus on Financial Crimes

The latest action by the Enforcement Directorate highlights the agency’s continued focus on tackling large-scale economic offences, banking frauds and money laundering operations. Financial investigators are increasingly using digital evidence, transaction analysis and forensic accounting methods to track illicit fund movements and identify beneficiaries of fraudulent schemes.

Officials said the investigation remains active and additional evidence collected during the searches is currently being analyzed to determine the complete extent of the alleged fraud and money laundering activities.