On Wednesday, the Enforcement Directorate arrested the former Rajya Sabha MP KD Singh. Singh has been claimed to be in connection with a money laundering case.
Commenting on the incident, TMC MP Sougata Roy mentioned that KD Singh is not associated with the TMC anymore neither he is an MP. The ED investigation against Singh and a firm linked to him (M/s Alchemist Infra Realty Limited) dates back to September 2016 when it filed a criminal case under the PMLA taking cognizance of a charge sheet filed against the company, its directors, and others by market regulator SEBI.
Meanwhile, the ED said that the investigation disclosed that the proceeds of crime generated by Alchemist Infra Realty Ltd were laundered through the web of companies.
Reportedly, the investigations further revealed that the funds mobilized by the firm from various investors were never utilized for the purpose for which they were collected. The same was transferred to bank accounts of other group companies.
These companies included the paper companies from where they were systematically siphoned off by the accused and used to purchase properties at various locations in the country.
The ED further added that all such assets in Punjab, Haryana, Shimla, and bank accounts in HDFC Bank worth ₹239.39 crores identified during investigations have been provisionally attached.
They also mentioned that the company had launched an illegal collective investment scheme, also called a Ponzi or chit fund scheme. In the scheme, they had mobilized funds of about ₹1,916 crores from the public in the years preceding 2015.
In 2015, the firm had informed the SEBI that it had refunded ₹1,077 crores after the market regulators’ investigation and had sought more time to restore the rest of the amount, which was turned down by the SEBI.
Subsequently, a charge sheet was filed by the SEBI in March 2016. Singh was questioned by the Central Bureau of Investigation (CBI) in the Narada sting probe as well.