India, June 20 -- The Enforcement Directorate on Friday said it had seized over 300 passbooks linked to mule accounts opened in the names of labourers that were allegedly used to divert the Delhi government funds from the "classroom construction scam" during the previous Aam Aadmi Party regime.

The passbooks were seized after the probe agency conducted searches in connection with the case at 37 locations in Delhi on June 18.

In a statement, the ED said officials have "unearthed substantial incriminating evidence from the premises of a private contractor".

"Among the materials seized were original departmental files belonging to the Government of National Capital Territory of Delhi, as well as rubber stamps bearing the names and designa...