The Directorate of Enforcement (ED), Kolkata Zonal Office, has taken significant action in connection with the alleged Proceeds of Crime (PoC) derived from the Public Distribution System (PDS) Ration Scam in West Bengal. Various assets, with a book value of Rs. 50.47 Crore, have been provisionally attached, including properties belonging to individuals such as Jyoti Priya Mallick, former Minister-In-Charge of the Food and Supply Department of the Government of West Bengal, and Bakibur Rahaman, a rice and flour miller. The market value of these properties is estimated to exceed Rs. 150 Crore.
The attached assets comprise 48 immovable properties, including a residential house in Salt Lake, Bolpur, belonging to Jyoti Priya Mallick, along with several ‘Benami Properties’ held in the names of his close associates. Additionally, two hotels owned by Bakibur Rahaman, one each in Kolkata and Bengaluru, have been included in the list of assets. Furthermore, balances in various bank accounts and fixed deposits have also been included in the attachment.
The investigation by the ED was initiated based on multiple FIRs registered by the West Bengal Police. These FIRs revealed unauthorized possession of Ration meant for delivery through the PDS, as well as involvement in bogus procurement of paddy by various private individuals. During the investigation under the Prevention of Money Laundering Act (PMLA), three main modus operandi were identified for the generation of PoC related to the PDS scam: siphoning of PDS ration to the open market, mixing of old wheat flour with fresh flour meant for PDS distribution, and bogus paddy procurement at Minimum Support Price (MSP).
It is suspected that PoC worth more than Rs. 10,000 Crore was generated in the PDS scam. Several individuals including Bakibur Rahaman, Jyoti Priya Mallick, Sankar Addhya, and Biswajit Das have been arrested under Section 19 of the PMLA and are currently in judicial custody. The investigation has also uncovered the laundering of a significant amount of PoC to Dubai and other countries by converting INR into foreign currencies through Full Fledged Money Changer Companies owned or controlled by individuals involved in the scam.
In connection with this case, Prosecution Complaints were filed before the Hon’ble Special Court (PMLA), Kolkata, on December 12, 2023, and March 5, 2024. The Hon’ble Court has taken cognizance of both complaints. The complaints seek the confiscation of properties acquired or obtained from PoC, including 101 immovable properties and balances in several bank accounts. Further investigation into the matter is currently underway.
