Massive Chit Fund Scam: ED Freezes Accounts and Seizes Assets Worth Over ₹1 Crore

Enforcement Directorate Takes Action in Chit Fund Investigation

Bhubaneswar: The Enforcement Directorate (ED) has taken significant steps in a multi-state chit fund investigation, freezing 182 bank accounts and confiscating over ₹1 crore in cash along with six luxury vehicles, as reported on Tuesday.

The ED's Bhubaneswar Zonal Office executed search operations on August 5, targeting five locations associated with Wellfare Buildings and Estates Pvt Ltd (WBEPL) and its directors in Visakhapatnam and Hyderabad, under the Prevention of Money Laundering Act, 2002.

Raids were conducted at the residences of former Andhra Pradesh MLA Malla Vilaya Prasad, Varaha Ramakrishna Satya Sinivasa Rao Alla, among others.

During these operations, authorities recovered ₹1.01 crore in cash, various movable and immovable assets, and incriminating documents related to WBEPL and its directors.

Additionally, the ED has issued orders to freeze 182 bank accounts and has seized six high-end vehicles linked to WBEPL and its management.

The investigation was initiated by the ED's Bhubaneswar office following multiple FIRs and charges filed by the Economic Offences Wing (EOW) of Odisha Police, the CBI, and the Anti-Corruption Bureau (ACB) of Jharkhand.

The agency discovered that WBEPL's directors had unlawfully amassed over ₹2,000 crore from thousands of unsuspecting investors across several states, including Odisha, West Bengal, Bihar, Jharkhand, and Andhra Pradesh, under the guise of offering land in Visakhapatnam.

Eventually, the company ceased operations at its branch offices nationwide, leaving investors defrauded.

The directors allegedly misappropriated investor funds for personal use, manipulated financial records to hide deposits, and engaged in dubious land transactions to evade legal responsibilities.