Approximately 18 locations were searched, including sites in Bihar, West Bengal, Uttar Pradesh, and Delhi. The investigation stems from state police FIRs alleging the misappropriation of about ₹85 crore through approximately 400 loan accounts, with funds disbursed based on forged warehouse receipts.
The Reserve Bank of India (RBI) had previously conducted a verification of the bank, identifying significant fund diversions. Mehta, a senior RJD politician representing the Ujiarpur constituency, has previously served as Bihar's Minister for Revenue and Land Reforms.
The RJD has criticized the ED's actions, accusing the BJP-led central government of using investigative agencies to target opposition leaders. RJD spokesperson Mrityunjay Tiwary stated, "The BJP uses ED, CBI, and IT department against the RJD and leaders of other opposition parties... It is evident that the rulers in Delhi are afraid of the RJD and its leaders; that's why they are using central probe agencies against our leaders."
The Vaishali Urban Development Cooperative Bank was established by Mehta's father, Tulsi Das Mehta, in Hajipur, Vaishali district, approximately 35 years ago, receiving its operational license from the RBI in 1996. Alok Mehta succeeded his father as chairman in 1995 and held the position until 2012. In 2015, the RBI uncovered irregularities, leading to the cessation of the bank's operations.