The Enforcement Directorate on Thursday conducted searches on the premises linked to TMC MP K.D. Singh in Delhi and Chandigarh.
“These searches have been carried out in connection with a Ponzi scheme and housing fraud,” said a senior ED official. The case allegedly involves ₹1,900 crore.
It is alleged that the agency has sent several summonses to Mr. Singh, but has not got proper cooperation in the investigation.
In the case involving Alchemist Infra Realty Limited, the ED had in January attached assets worth ₹239 crore. Mr. Singh headed the Alchemist Group till 2012.
The attached properties are located in Chandigarh, Panchkula, Derabassi and SAS Nagar in Punjab and in Himachal Pradesh’s Shimla. The balance in two bank accounts was also attached.
SEBI complaint
The ED probe is based on a prosecution complaint filed by the Securities and Exchange Board of India (SEBI) against the company and its directors in March 2016.
According to the ED, the funds mobilised by the company from various investors were never used for the stated purpose. They were instead transferred to the bank accounts of other group entities that were mainly paper firms.
As alleged, the funds were systematically siphoned off and invested in properties.
