The Enforcement Directorate (ED) on Wednesday conducted raids on an NGO office which belongs to the deceased brother of BJD MLA and party chief whip Pramila Mallik.
The raid is being conducted in connection with a loan fraud of ₹231 crore. The NGO was also accused of running a Non-Banking Financial Corporation, flouting the guidelines of the Reserve Bank of India.
The ED officials conducted raids at three locations — the residence and office of Mallik’s deceased brother Khirod Chandra Mallick and another location in New Delhi.
Khirod passed away in September 2024 following a heart attack.
As per the allegation, Khirod’s NGO, Bharat Integrated Social Welfare Agency (BISWA), had secured loans from a number of public and private sector banks to the tune of ₹231 crore in 2010.
The NGO was accused of obtaining the loans with the objective of lending it to different women self help groups. However, the NGO fabricated the utilisation certificates instead of submitting the actual realisation of the amount furnished.
The money, meant for promoting the cause of the women self help groups, was used for election purposes, sources said.
The CBI and Economic Offence Wing have earlier registered cases in this connection. Khirod and his son had earlier been arrested by the Economics Offence Wing of Mumbai Crime Branch in connection with the financial fraud in 2019.
The ED refused to comment on the matter.
