Enforcement Directorate Uncovers Major Fraud in Sahara Prime City Land Deal
ED Launches Raids in Sahara Prime City Investigation
Kolkata: The Enforcement Directorate (ED) has intensified its investigation into the Sahara Prime City land scandal by conducting raids at various locations associated with the company and its officials across Odisha, Andhra Pradesh, and Karnataka. This operation, which took place on February 2, resulted in the seizure of significant electronic evidence, according to an official announcement made on Tuesday.
The ED's Kolkata Zonal Office executed search operations in Anantapur (Andhra Pradesh), Ballari (Karnataka), and both Bhubaneswar and Berhampur in Odisha. During these searches, the agency recovered digital evidence, including WhatsApp messages, call logs, and contact records.
In addition to digital data, the ED confiscated financial documents and accounting records from the involved entities for further scrutiny. Statements from various individuals were also recorded under Section 17 of the Prevention of Money Laundering Act, 2002.
These searches are part of a broader investigation concerning the sale of a land parcel owned by Sahara Prime City Limited in Berhampur, Odisha. The ED's actions were conducted under Section 17(1) of the Prevention of Money Laundering Act (PMLA), 2002, as part of an ongoing inquiry into the case involving Humara India and others.
The investigation revealed that approximately 32 acres of land out of a total of 43 acres in Berhampur were fraudulently sold in December 2025, based on a revoked Board Resolution favoring a Sahara employee, violating Supreme Court guidelines.
The ED indicated that this sale was orchestrated by senior management within the Sahara Group, with discrepancies noted between the reported sale price and the actual market value.
Previously, the ED initiated its investigation following FIRs filed under Sections 420 and 120B of the Indian Penal Code against Humara India Credit Cooperative Society Limited (HICCSL) and others across multiple states.
To date, over 500 FIRs have been lodged against various entities within the Sahara Group, with more than 300 of these involving serious offenses under the PMLA, alleging extensive fraud against depositors through forced redeposits and refusal to honor maturity payments.
The investigation has uncovered that the Sahara Group was operating a Ponzi scheme, managing funds in an unregulated manner without proper oversight from depositors. Maturity payments were not returned but instead reinvested, and financial records were manipulated to hide these non-payments.
The ED noted that significant liabilities were transferred between different entities without any legitimate business rationale, leading to substantial debts reflected in four cooperative societies. Despite financial difficulties, the Sahara Group continued to solicit new deposits, resulting in an outstanding liability that has ballooned due to accrued interest over the years.
Moreover, it was discovered that a considerable amount of deposits was misappropriated to create benami assets, extend loans, and for personal use, thereby denying depositors their rightful returns.
In connection with this case, five provisional attachment orders have been issued, targeting multiple land parcels owned by the Sahara Group, including benami properties and assets belonging to other individuals.
Three individuals have been arrested in relation to this case, with Anil Vailaparampil Abraham and O.P. Srivastav currently in judicial custody. A charge sheet and a supplementary charge sheet have already been filed.