The Enforcement Directorate has arrested former Rajya Sabha member from the TMC and businessman KD Singh in a money laundering case related to `1,900 crore ponzi scheme fraud.
The 59-year-old founder of Alchemist Ltd. is facing charges under the Prevention of Money Laundering Act (PMLA). The ED arrested him late last night for not cooperating in the investigation of the case, sources said.
Singh was produced before a special court here on Wednesday which remanded him to the ED custody till January 16, they said.
In September 2019, the ED had carried out searches at the premises of Singh and those linked to him in Delhi and Chandigarh and had seized cash of `32 lakh and $10,000.
Singh was the chairman of Alchemist Ltd., which deals in pharmaceuticals and other sectors, before he resigned in 2012. He is said to be the Chairman Emeritus and founder of the business group at present.
The agency is probing him in connection with two money laundering cases and has questioned him on earlier occasions.
This case relates to a probe against the former MP and a firm linked to him -- Alchemist Infra Realty Ltd. The ED had filed the case in September, 2016, taking cognisance of a charge sheet filed against the company, its directors and others by SEBI.
The scam is estimated to be worth about Rs 1,900 crore and the agency had attached assets worth Rs 239 crore of Alchemist Infra Realty Ltd in 2019. The company had allegedly launched an illegal collective investment scheme, also called a ponzi or chit fund scheme, and mobilised funds of about Rs 1,916 crore from the public in the years preceding 2015, the sources said.
The second money laundering case against him and others is based on an FIR filed by the Kolkata Police in 2018. The Kolkata Police had booked Singh, his son Karandeep Singh, Alchemist Township India Limited, Alchemist Holdings Limited and various other group companies and directors for allegedly cheating thousands of customers.
"Singh through companies raised huge amounts of money from thousands of customers in the garb of investments by luring them with high returns and also against sale and booking of plots and flats. So far, investigation has revealed that these funds raised from the public were not used for the intended purpose and were diverted or siphoned off to various group companies," the agency had alleged.
Money so collected from the innocent public has been transferred in a circular manner in order to conceal and layer the transactions in a "fraudulent" manner, it had said
"Further, various web of entities involved in this process are having dummy directors. These directors have no idea to state the purpose for which the said money was being collected and transferred," according to the ED.
