NEW DELHI/KOLKATA: The Enforcement Directorate (ED) on Wednesday launched search and seizure operations at multiple premises in Kolkata and Indore, Madhya Pradesh, as part of a money laundering investigation linked to an alleged investment fraud in which numerous investors were reportedly cheated.
The searches, which were underway at the time of reporting, covered premises of suspects including KC Dujari, Kali Kishore Bagchi and others associated with the Amrit Group of companies, officials said.
The ED’s Kolkata Zone initiated the operation under Section 17 of the Prevention of Money Laundering Act (PMLA). The searches were carried out simultaneously at multiple locations in coordination with security forces and state police.
According to the allegations being examined by the federal agency, the Amrit Group of companies and its directors collected substantial amounts of money from members of the public through various deposit schemes, allegedly promising investors high returns.
The group and its directors are accused of subsequently failing to repay the promised returns, leading to allegations of financial fraud involving a large number of investors.
As part of Wednesday’s operation, ED officials are examining documents, financial records and other materials recovered or found at the premises. The agency is seeking to trace the movement of funds and establish the financial trail associated with the transactions, officials said.
The ED’s action under the PMLA follows its examination of the alleged collection of funds from members of the public and the subsequent handling and movement of those funds by entities and individuals linked to the group.
The searches are aimed at gathering documentary and other evidence concerning the alleged financial transactions, including the roles of the group’s directors and promoters and the movement of funds between associated entities and individuals.
The agency is also examining company records and documents connected with individuals associated with the group to determine the extent of the alleged financial irregularities.
As part of the investigation, the ED is expected to identify and trace assets, if any, that may be linked to the suspected proceeds of crime. The ongoing searches are intended to help the agency establish the financial trail and gather evidence relevant to the money laundering probe.
