India, Dec. 26 -- The Enforcement Directorate (ED) seized Rs.23 lakh in cash and froze bank funds worth Rs.20 lakh during searches in Mumbai and Indore, as part of a money-laundering probe relating to an alleged bank fraud case against a private business group.

The investigation into Ruchi Group has revealed alleged diversion and siphoning of loan funds, thereby causing losses to banks.

During the searches on Tuesday, bank funds worth over Rs.20 lakh belonging to accused persons and their family members were frozen, and more than Rs.23 lakh in cash was seized by the ED. Incriminating records, including digital devices, establishing the alleged roles of several accused persons in the case, were also seized by the search teams.

The ED in...