The Directorate of Enforcement (ED) conducted a search of 15 locations in Kolkata, Siliguri, Howrah, and Agra on March 1, 2023, in response to two chit-fund organizations, Pincon Group and Tower Infotech Ltd. The ED initiated a money laundering case against these organizations based on FIRs filed by the CBI and West Bengal Police for the misappropriation of funds amounting to Rs. 156 Crore and 638 Crore, respectively.
The Pincon Group and Tower Infotech Ltd. lured people with lucrative schemes and extremely high-interest rates, amassing funds from the general public. However, these organizations failed to repay the money, thereby defrauding the public.
The ED conducted searches at the residences of Manoranjan Roy, Hari Singh, Subharti Banerjee, Sanjay Basu, Mina Dey, and Ramendu Chattopadhyay, who are directors of Pincon Group and Tower Group. The ED also searched the beneficiaries of Eden Infraprojects Pvt Ltd, Indrajit De & Sachchidanand Rai, Indian Structural Engineering Company Pvt Ltd, and Ashish Wheels Ltd.
During the search, the ED seized incriminating papers, digital evidence such as computers and mobile devices, and cash totalling Rs. 1.27 crore. The probe into the matter is still ongoing, and more details are expected to emerge.
Chit-fund schemes have been rampant in India, with several companies luring investors with the promise of high returns. However, most of these companies fail to repay the investors, causing massive losses to the public. The government has been cracking down on such fraudulent schemes, and the recent search by the ED is part of these efforts.
The ED is the primary enforcement agency under the Department of Revenue, Ministry of Finance, responsible for enforcing two laws related to economic offences, namely the Foreign Exchange Management Act (FEMA) and the Prevention of Money Laundering Act (PMLA).
The search conducted by the ED is a clear indication that the government is taking a tough stance on economic offences and is determined to crack down on fraudulent schemes. The ED’s efforts are expected to deter companies from indulging in fraudulent activities and protect the interests of the public.
