Bhubaneswar: The Enforcement Directorate (ED) has seized around Rs 10 lakh during searches at four locations linked to Bharat Integrated Social Welfare Agency (BISWA), an Odisha-based NGO, in a loan fraud case.

The NGO had secured bank loans to the tune of Rs 231 crore for financing self-help groups (SHGs).

The NGO was being run by Khirod Mallik, the deceased brother of senior BJD leader and Binjharpur MLA Pramila Mallik.

The ED sleuths conducted searches at four locations linked to BISWA in Odisha and Delhi under the provisions of Prevention of Money Laundering Act (PMLA), 2002 on December 18.

The ED initiated probe into the loan fraud case on the basis of FIR registered with the Economic Offences Wing (EOW) of Odisha Police and the CBI against BISWA.

“Investigation under PMLA revealed that BISWA, which was being run by Khirod Mallik, mis-utilized the funds and also started accepting deposits from the public in violation of the RBI guidelines. The group was also involved in a bank loan fraud,” said the ED in a statement today.

During the search, the officials have found as many as 505 suspected benami accounts of individuals and SHGs and their signed and unsigned cheque books, said the ED.

“Around Rs 72 lakh lying in the 505 suspected benami accounts has been frozen and shares worth Rs 10 lakh have been recovered and seized along with incriminating documents including sale deeds, cheque books and digital devices. Further investigation into the fraud case is underway,” stated the ED.