The Enforcement Directorate (ED) on Monday took major action in a money laundering case linked to an alleged scam involving fake government offices in Gujarat’s Dahod district. The agency provisionally attached movable and immovable properties worth ₹22.70 crore belonging to key accused Abubakar Jakirali Saiyad, his family members and associates under the Prevention of Money Laundering Act (PMLA). The attached assets include seven parcels of land, mutual fund investments and balances held in various bank accounts.
The ED’s Ahmedabad zonal office said its investigation was initiated on the basis of an FIR registered at Dahod Town A Division police station in 2023. According to the FIR, the accused allegedly created six fake offices in the name of the Irrigation and Water Resources Department in Dahod district. These offices were allegedly used to impersonate government officials, prepare forged documents and obtain government grants in the name of irrigation-related works.
According to the investigating agency, the accused allegedly created setups resembling government offices and used forged seals and signatures on official documents. They allegedly obtained government funds by presenting fabricated works and documents. The ED has alleged that the activities were carried out through a conspiracy to deceive the government system and siphon off public funds.
The ED investigation reportedly found that the accused obtained approval for 121 fake works. Government funds were allegedly released against these works and subsequently moved through a network of bank accounts instead of being used for the stated purposes. The agency said the money was later allegedly used to acquire properties, make investments and for other purposes.
The investigation has also revealed an elaborate trail of the alleged proceeds, according to the ED. The agency said funds generated through the alleged fraud were deposited into nine bank accounts opened in the names of fake government offices. From these accounts, the money was transferred through 18 intermediary accounts before being distributed among 118 other accounts linked to individuals and entities allegedly connected with the accused.
The ED said the layered movement of funds allegedly helped conceal the source of the money and the identity of its eventual beneficiaries. The agency is now examining the links between the bank accounts, investments and properties acquired by the accused and their associates. The properties provisionally attached in the case are being treated as assets allegedly derived from criminal proceeds.
Several accused persons have already been arrested in connection with the case, including former IAS officer B.D. Ninama. The agency is now examining the role of other individuals who may have been involved in setting up the fake government offices, obtaining approvals for the alleged fictitious works and facilitating the release and movement of government funds.
Investigators are also examining the financial trail to determine how the allegedly diverted funds were distributed and whether any of the proceeds were subsequently converted into immovable property or financial investments. The ED’s latest action is part of its continuing investigation into the alleged laundering and utilisation of funds generated through the purported government grant fraud.
The provisional attachment is intended to prevent the properties allegedly linked to the proceeds of crime from being transferred, sold or otherwise disposed of during the investigation. The agency is examining financial records, property documents and banking transactions to establish the complete flow of funds.
The Dahod case had come to light after the registration of the police FIR in 2023. The alleged creation of multiple government offices and approval of 121 works has since become the focus of an investigation involving the alleged misuse of government identity, forged documents and diversion of public money.
The ED said its investigation is continuing. The agency is now tracing the source and movement of the alleged proceeds, identifying the beneficiaries and examining the wider network allegedly involved in operating the fake offices and routing the funds.
