Money laundering probe: ED raids over 24 locations in Kolkata, Punjab, Delhi and Mumbai in chit fund case

The Enforcement Directorate (ED) on Friday carried out a series of search operations in relation to the chit fund case involving money laundering allegations, ANI reported. The probe agency is reportedly conducting raids at more than two dozen locations spanning Kolkata, Punjab, Delhi and Mumbai.

According to sources privy to the investigation, the central agency is targeting these locations spread over four states. According to media reports, an extensive operation is underway at the premises of suspects involved in the notorious chit-fund case. The ED registered the case against chit-fund companies connected to Punjab and West Bengal earlier.

After receiving money from investors, it was found that the chit-fund firm diverted the collected funds for personal gain and defaulted on repayment of the maturity amount. Furthermore, the proceeds were transferred to various other beneficiaries.

Earlier in March this year, the ED said that it had attached Rs10.29 crore of Trinamool Congress in the form of a demand draft tendered by the party during an investigation into alleged money laundering by Alchemist Group and others.

“The ED investigation revealed that Alchemist Group collected funds amounting to more than ₹1,800 crore from investors in its companies, namely, Alchemist Holdings Limited and Alchemist Township India Limited, on the false promise of providing high returns and giving flats, villas, plots, high rate of interest on the investments to the public or investors. However, the investors never returned their money, and the funds siphoned off or diverted to various Alchemist Group companies,” the ED statement read.

The federal probe agency accused the Alchemist Group of fraudulently using around ₹10.29 crore. It was alleged that the Alchemist paid aviation companies on behalf of the TMC during the 2014 Lok Sabha poll campaign.

Following the arrest of Singh, a former TMC Rajya Sabha MP in January 2021, the agency had claimed that the company launched an illegal collective investment scheme, also known as a ponzi or chit fund scheme. Through this scheme, the ED alleged it mobilised funds from the public in the years preceding 2015.