ED searches eight Kolkata locations in alleged chit fund fraud case

• The ED searched eight locations in Kolkata on Monday in connection with an alleged chit fund fraud

• Sources said investors were promised high returns before payments stopped, with funds allegedly diverted into property projects

• The searches followed an operation last month that examined company offices, officials’ homes and financial records

The Enforcement Directorate (ED) conducted simultaneous searches at eight locations in Kolkata on Monday as part of an investigation into an alleged chit fund fraud involving thousands of investors.

Teams from the central agency, accompanied by Central Armed Police Forces personnel, searched premises mainly in south Kolkata, including Tollygunge and Sarat Bose Road, sources familiar with the investigation said.

According to the sources, an investment entity attracted deposits through a multi-level marketing scheme that promised lucrative returns. Some investors initially received payments, encouraging them to commit larger sums, before the payouts gradually stopped.

Investigators suspect that money collected from investors was subsequently diverted into real estate projects in Kolkata. Sources alleged that these projects were operated by influential promoters with close links to the state’s previous ruling establishment.

The latest searches followed an ED operation last month targeting offices of the investment company and the homes of several of its officials.

Information gathered during those searches prompted Monday’s action, the sources said. Investigators had examined transaction records and banking documents to trace the movement of funds and establish the extent of the entity’s operations.

The scrutiny reportedly indicated that the business, which originated in Kolkata, had expanded its activities to other states.

Further details about the premises searched and the findings of Monday’s operation were awaited.

With IANS inputs