New Delhi, June 21 -- The Enforcement Directorate (ED) on Friday said it had recovered more than 300 bank passbooks linked to suspected "mule" accounts opened in the names of labourers and used to divert government funds in connection with its money laundering probe into alleged irregularities in the construction of classrooms during the previous Delhi government's tenure.

The agency also seized forged letterheads of private contractors and shell firms used to fabricate procurement records and generate bogus purchase bills, along with original government departmental files and rubber stamps bearing the names and designations of officials from the Public Works Department (PWD).

"During searches, ED unearthed substantial incriminating evi...