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Three Bihar Lawyers Arrested in Rs 50 Crore Railway Claim Scam: ED Investigation Uncovers Massive Fraud

By Vishwapati
Patna: Three lawyers from Bihar—Vidyanand Sinha, Parmanand Sinha, and Vijay Kumar—have been arrested by the Enforcement Directorate (ED) in connection with a massive railway claim scam. The trio was produced before the PMLA Special Court in Patna and subsequently sent to jail. The ED plans to take them into custody for further interrogation.

A money laundering case has been registered against the lawyers under the Prevention of Money Laundering Act (PMLA) 2022.

The case stems from allegations of fraud involving death claims at the Railway Claims Tribunal in Patna. Initially investigated by the Central Bureau of Investigation (CBI) for criminal offences, the ED launched a parallel probe focusing on money laundering based on the CBI’s findings.

The accused, including lawyers Vidyanand Sinha, Parmanand Sinha, Vijay Kumar, and several unidentified railway officials, were charged under the Indian Penal Code (IPC) and the Corruption Act. Investigations revealed that in cases of railway accident death claims, victims received only a portion of their entitled compensation, while the remaining funds were embezzled by the conspirators.

According to the ED, Vidyanand Sinha and his associates perpetrated fraud in over 900 cases. Judge R.K. Mittal had issued orders awarding approximately ₹50 crore in compensation across these cases.

Further investigations uncovered that the lawyers had opened fraudulent bank accounts in the claimants’ names, which were controlled exclusively by the lawyers. The claimants were unaware of these accounts, as their signatures or thumbprints were obtained deceitfully on blank papers. The compensation amounts were either transferred into these fake accounts or withdrawn in cash directly by the accused.

This case underscores the need for stricter oversight in compensation processes and highlights the misuse of legal and banking systems for personal gain. Further developments are awaited as the ED continues its investigation.

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Bihar Railway Claim Scam: ED Raids Uncover ₹100 Crore Fraud Using…

  • The author Vishwapati is a senior journalist based in Patna. He may be contacted at vishwapati25@gmail.com
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