ED books four GST officials who posed as its sleuths to extort ₹1.5 crore from Bengaluru businessman

The four went to the businessman for a "fake" raid claiming that they were from the ED and allegedly extorted ₹1.5 crore from him by "threatening" him.

The Enforcement Directorate Wednesday registered a money laundering case against four arrested Goods and Services Tax (GST) officials who allegedly extorted ₹1.5 crore from a businessman here by impersonating as ED sleuths, official sources said.

They will be questioned after the ED gets their custody and the agency will look for their assets that can be attached under the anti-money laundering law. (Representational image)

Sections of the Prevention of Money Laundering Act (PMLA) have been pressed against the accused taking cognisance of the FIR filed by the Bengaluru City Crime Branch against them, the sources said.

The four went to the businessman for a "fake" raid claiming that they were from the ED and allegedly extorted ₹1.5 crore from him by "threatening" him, the agency sources said.

They will be questioned after the ED gets their custody and the agency will look for their assets that can be attached under the anti-money laundering law, they said.

The four GST officials were arrested by the Bengaluru City Crime Branch on charges of kidnapping and extortion on Wednesday.

The arrests by the police came following a complaint filed by a businessman at Byappanahalli police station of Bengaluru East division.

"The person has alleged that about a week back about four to five persons came to his house and forcefully took him around the city in two vehicles and also took him to his office and there they demanded a huge amount of money," Bengaluru Police Commissioner B Dayananda said.

Speaking to reporters here, he said: "Subsequently after giving about ₹1.5 crore, they have let him go. Based on the complaint a case was registered. Keeping in mind the sensitivity of the case it was handed over to the City Crime Branch."

The City Crime Branch confirmed from senior GST officials that no such raid was authorised, he said, adding "hence it was found that these people have intentionally done this act to gain illegal money."

The arrested include a superintendent rank officer apart from inspector and senior intelligence officer rank staffers of the GST.