New Delhi/Chandigarh, May 29: The Directorate of Enforcement (ED), Chandigarh Zonal Office, has arrested Deepak Singla under the Prevention of Money Laundering Act (PMLA), 2002 in connection with an alleged multi-crore bank fraud linked to fake timber imports and manipulated Foreign Letters of Credit (FLCs).
According to an ED, Deepak Singla was arrested on May 18, 2026. After obtaining transit remand from the Rouse Avenue Court in New Delhi, the ED secured six days’ custodial remand from the Special PMLA Court in Panchkula. He was later sent to 14 days judicial custody on May 26.
The ED investigation stems from an FIR registered by the CBI and BSFB, New Delhi, against Mahesh Timber Pvt. Ltd., its directors and others under provisions of the IPC and Prevention of Corruption Act.
Investigators alleged that the accused fraudulently enhanced Foreign Letters of Credit through unauthorized SWIFT amendments without corresponding entries in the Finacle banking system, causing wrongful losses of nearly ₹155.21 crore to Oriental Bank of Commerce and consortium banks.
The ED claimed that Mahesh Timber Pvt. Ltd., in conspiracy with associated entities and individuals in India and Singapore, siphoned off nearly ₹195.02 crore through manipulated FLCs without any genuine timber imports.
Customs verification reportedly found several Bills of Entry and Bills of Lading submitted to banks to be forged and fabricated.
The probe further revealed that multiple Singapore-based and Indian firms, including Amazon Exports Pte. Ltd., Mahesh Timber Singapore Pte. Ltd., Traffic Media India Pvt. Ltd., BVM Shipping PTE Ltd., Pearl Maritime PTE Ltd., and Traffic Media Pvt. Ltd., were allegedly used to create a fake import trail for timber consignments between Singapore and India.
The ED said Deepak Singla played a prominent role in the alleged conspiracy and was closely associated with Ashok Kumar Mittal and Raman Singhal.
He reportedly held key managerial and directorial positions in several companies connected to the case. Investigators also uncovered alleged sham transactions related to purported timber sales and purchases despite the absence of actual imports.
The agency further named Harish Singla in the investigation, alleging his involvement through entities that provided guarantees and financial backing to Mahesh Timber Pvt. Ltd.
As part of the investigation, the ED conducted search operations on May 18 at premises linked to Deepak Singla, Ayush Tiwari, Amreek Singh Gill and others in Delhi and Goa.
During the raids, officials seized unaccounted cash amounting to ₹27.75 lakh, 6,000 Singapore Dollars, company ledgers, incriminating documents and electronic devices under provisions of the PMLA.
