ED arrests man for interfering with probe in ₹5,978-Cr fraud

According to ED officials, Kalyan Banerjee, who was arrested in Secunderabad, Hyderabad, has been accused of falsely claiming to be close to senior bureaucrats and politicians

MUMBAI: The Enforcement Directorate (ED) on Saturday arrested an imposter for allegedly attempting to manipulate and stall the auction of assets seized in the money laundering probe into an alleged ₹5,978-crore fraud.

ED arrests man for interfering with probe in ₹5,978-Cr fraud

According to ED officials, Kalyan Banerjee, who was arrested in Secunderabad, Hyderabad, has been accused of falsely claiming to be close to senior bureaucrats and politicians. As part of its probe into the fraud case, the ED had in August 2019 attached assets worth ₹299.99 crore belonging to businesswoman Nowhera Shaik and other accused from several states including Maharashtra, Telangana, Kerala and Delhi.

The ED’s money-laundering investigation came after several cases were registered against Shaik and others alleging that they had illegally collected money from thousands of investors by promising them high returns of 36% per year. However, the accused had failed to deliver on their promise and had duped the gullible investors by failing to return the principal amount too. So far, the ED has provisionally attached assets, including immovable and movable, worth around ₹428 crore in the case and submitted two chargesheets in the Hyderabad court.

According to ED officials, after Shaik allegedly failed to legally protect what she had acquired through the fraud, she allegedly hired Banerjee to tamper with the investigation. On Monday, ED officials said that Banerjee had texted and called up ED officials while falsely claiming to be close to high-ranking bureaucrats and politicians. Banerjee even attempted to bribe ED officials to manipulate the auction process of the seized assets.

When rebuffed by the ED officers who asked him to follow the due process of law, Banerjee allegedly threatened them and pressured them to stall the auction process, said ED officials. Following the incidents, ED officials began investigating Banerjee’s background and found that he was an imposter posing as a consultant to various government departments and claiming to be connected to senior bureaucrats and politicians.

Investigations revealed the accused had given an incomplete address in his Know Your Customer details for getting a mobile SIM card and was eventually traced to his house in Secunderabad on Saturday. His mobile phones revealed incriminating Whatsapp chats allegedly with Shaik and her associates, ED officials added.

The chats revealed that he was trying to manipulate the ED investigation, and judicial process, using unethical methods. He was also trying to sell some of the properties acquired out of the proceeds of crime, said officials, adding that Shaik was paying him a significant commission to carry out the manipulation.

“In statements recorded by the ED under the Prevention of Money Laundering Act, Banerjee allegedly admitted to impersonation in order to put pressure on officers and that he was acting on the directions of Shaik and her associates,” an ED official said. “The ED has categorically demonstrated that any attempt by unscrupulous individuals to interfere in its investigation proceedings shall be dealt with firmly and appropriate action under the law will be taken against them,” the official added.