The Enforcement Directorate (ED) has conducted search and seizure operations at multiple premises in Goa in connection with a Rs 2.63 crore loan fraud involving UCO Bank. The fraud allegedly involved sanctioning loans against fake gold ornaments, resulting in a significant loss to the bank. The ED’s investigation, initiated under the Prevention of Money Laundering Act (PMLA), 2002, revealed that businessman Gundu Kelvekar and bank valuer Hemant Raikar were involved in a criminal conspiracy to obtain multiple gold loans from UCO Bank branches in Goa.
The loans were acquired by pledging fake gold ornaments, which Raikar, as an empanelled gold valuer, knowingly certified as genuine. The ED investigation found that between 2019 and 2023, Kelvekar and his wife Mayuri systematically obtained these loans in their names and in the names of their associates. The loan amounts were then transferred to Kelvekar’s savings bank account, with a significant portion being withdrawn in cash. Kelvekar withdrew Rs 79.65 lakh, while his wife withdrew Rs 48.75 lakh.
The ED also found that part of the funds was layered through transfers to various entities, including bullion dealers, to project the proceeds of crime as untainted. During the search operations, assorted yellow metal ornaments weighing 4.5 kg were found at Kelvekar’s residence, which were confirmed to be not gold but white metal with yellow plating by an authorized valuer.
The PMLA investigations revealed that the gold loans procured in a fraudulent manner were not only from UCO Bank but also from other public sector banks and even from cooperative banks. As a result, the proceeds of crime, currently estimated at Rs 2.63 crore, are expected to increase significantly. The ED’s investigation is ongoing, and further actions are being taken to unravel the money trail and bring the perpetrators to justice. The case highlights the need for increased vigilance and scrutiny in the banking sector to prevent such fraudulent activities.