Tribune News Service
New Delhi, January 13
The Enforcement Directorate (ED) on Wednesday said it had arrested former TMC Rajya Sabha MP KD Singh under the Prevention of Money Laundering Act (PMLA) in a case relating to certain unexplained financial transactions.
Singh, who was elected to Rajya Sabha in April 2014 on a TMC ticket, was placed under arrest by the ED after he “failed to explain certain transactions pertaining to the money-laundering case” in which he is allegedly involved, official sources in the agency said.
In September 2019, the ED had carried out searches on the premises linked to Singh in New Delhi and Chandigarh in connection with the 14 companies of Alchemist Group related to and controlled by his son Karan Deep Singh.
During searches, according to ED, a number of documents reflecting the circular nature of transactions, digital evidence and property documents were seized. Search at the official residence of KD Singh in Delhi resulted in the recovery of Rs 32 lakh in cash along with foreign exchange worth $10,000.
Investigation under the PMLA by the ED was initiated in 2018 on the basis of FIRs registered by Kolkata Police under sections relevant to cheating and criminal conspiracy against Singh, his son, Alchemist Township India Limited, Alchemist Holdings Limited and various other companies and directors linked with the group for allegedly cheating thousands of customers.
According to the ED, the former TMC MP used his companies, including Alchemist Township India Limited and Alchemist Holdings Limited, to raise huge amounts of money collected from customers in the garb of investments by promising them high returns. The money was also raised against the sale and booking of plots and flats, the agency had said.
Officials in the ED said the funds raised were allegedly not used for the intended purpose and were allegedly diverted and siphoned off to various group companies. “Money so collected from the innocent public was transferred in a circular manner in order to conceal and layer in a fraudulent way. Further, various entities involved in this process have dummy directors,” said an ED official.