KOLKATA, INDIA — The Enforcement Directorate (ED) launched simultaneous raids across multiple locations in Kolkata on Friday, initiating a deep probe into a bank fraud scheme estimated to be worth Rs 1,200 crore (approximately $144 million). The investigation focuses on a prominent local jewellery company, which is suspected of masterminding an elaborate scheme to fraudulently secure large sums of money from the country’s banking system.
Anatomy of the Alleged Scheme
The method of operation, or modus operandi, was an organized network of deception, according to ED officials. The jewellery company is suspected of creating a web of fictitious entities and shell companies. These fabricated companies were then allegedly used to apply for and secure loans from a significant number of financial institutions. The scope of the alleged scam is vast, with the company’s management suspected of manipulating the financial system to siphon off unsecured loans from at least 25 different banking institutions. The ED believes the management orchestrated a complex scheme of deceit to acquire the large amounts of money.
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Sweeping Raids on Key Locations
To secure critical evidence related to the case, ED sleuths targeted several key locations in the city. The raids included the offices of the jewellery firm itself, as well as the private residences of its principal owners and several senior officials and employees. A particularly crucial target was the residence of a chartered accountant located in the Girish Park area of North Kolkata. The chartered accountant is believed by the ED to have played an instrumental role in designing and executing the fraudulent scheme.
Financial Crimes Officials Vow Accountability
An ED official confirmed that the raids were part of the agency’s commitment to rooting out financial misconduct. “These raids are part of our sustained efforts to root out financial misconduct and ensure that those who exploit the banking system are held accountable,” the official stated.
