Enforcement Directorate Targets Former MLA in Major Chit Fund Investigation

ED Launches Raids Linked to Chit Fund Scandal

Bhubaneswar: On Wednesday, the Enforcement Directorate (ED) executed searches at properties associated with former Andhra Pradesh MLA Malla Vijaya Prasad as part of an investigation into a significant chit fund scam spanning multiple states, according to agency officials.

The ED's Bhubaneswar Zonal Office conducted the raids at seven different sites located in Visakhapatnam and Hyderabad, focusing on a money laundering case linked to the alleged fraud.

This investigation revolves around a purported chit fund scam estimated at approximately Rs 3,000 crore.

Welfare Building and Estates Pvt Ltd, where Prasad served as managing director, reportedly solicited investments from individuals in Odisha and other regions between 2009 and 2014, promising substantial returns before failing to deliver, as stated by officials.

Previously, the CBI had initiated a case against the company regarding the alleged fraudulent activities, and multiple FIRs were filed by the Odisha Police.

In 2021, Prasad was apprehended by the Economic Offences Wing (EOW) of the Odisha Police in Visakhapatnam related to this case but was later granted bail.