In a major double-pronged offensive against corporate and financial fraud, federal investigating agencies have intensified enforcement actions across multiple states. The Enforcement Directorate has frozen 182 bank accounts, seized over ₹1 crore in cash, and impounded six luxury vehicles during raids linked to an alleged ₹2,000 crore chit-fund scam originating in Odisha. Simultaneously, Delhi’s Rouse Avenue Court has issued fresh open-ended non-bailable arrest warrants against four absconding promoters of Five Core Electronics Limited in connection with a multi-crore bank fraud case.
Multi-State Raids Target ₹2,000 Crore Chit-Fund Network
The Bhubaneswar zonal office of the Enforcement Directorate executed synchronized search operations under the Prevention of Money Laundering Act across five strategic locations in Visakhapatnam and Hyderabad. The searches targeted premises associated with Welfare Buildings and Estates Private Limited, its board of directors, and key financial associates.
Investigators uncovered a complex web of transactions used to layer and integrate funds collected from thousands of unsuspecting depositors. The freezing of 182 bank accounts has effectively immobilized millions in suspected illicit capital, while financial intelligence teams analyze seized ledger books, digital storage media, and property deeds to trace the ultimate beneficiaries of the proceeds of crime.
Politicians and Key Operatives Under Financial Scrutiny
The money laundering probe extends into high-profile political and business networks across southern and eastern India. Among the premises searched were properties belonging to former Andhra Pradesh legislator M.V. Prasad, alongside business associate Varaha Ramakrishna Satya Srinivasa Rao Alla and several other key operatives linked to the firm’s financial management.
The Enforcement Directorate’s action stems from a series of predicate offense charge sheets previously filed by the Economic Offences Wing of the Odisha Police, the Central Bureau of Investigation, and the Anti-Corruption Bureau of Jharkhand. These underlying cases allege that Welfare Buildings and Estates Private Limited fraudulently solicited public deposits under the guise of high-yield investment schemes before defaulting on payouts and siphoning the capital into private assets.
Delhi Court Issues Open-Ended Warrants in Bank Fraud Case
In a parallel legal development in New Delhi, Chief Judicial Magistrate T. Priyadarshini of the Rouse Avenue Court ordered the issuance of fresh open-ended non-bailable arrest warrants against four absconding promoters of Five Core Electronics Limited. The orders target Amarjeet Singh Kalra, Surinder Singh Kalra, Jagjit Kaur Kalra, and Surinder Kaur Kalra following their failure to submit to judicial proceedings.
Unlike standard arrest warrants that expire after a set duration, an open-ended non-bailable warrant remains continuously enforceable by law enforcement agencies nationwide until the subjects are physically apprehended or the issuing court formally cancels the order. Investigating agencies have already attached substantial cash reserves, immovable real estate properties, and corporate records linked to Five Core Electronics as part of ongoing efforts to recover defaulted bank loans and unravel the scope of the credit fraud.
