CBI files second case against ex-TMC MP in a week
The Central Bureau of Investigation (CBI) on Thursday registered a second case against former Trinamool Congress (TMC) Rajya Sabha Member of Parliament KD Singh within a week’s time. The CBI is investigating claims of fraud against Singh and his companies alleged by some residents of Kanpur on the pretext of providing them with huge returns on their investments, people familiar with the development said.
In the fresh case, the agency has alleged that Singh, through his companies Alchemist Infra Realty Limited and Alchemist Township Limited had taken sums worth crores from people, with a promise that their income will be doubled, the officials cited above said.
A similar case was registered last Friday against Singh and these two firms for allegedly cheating investors by promising villas/plots/apartments through his companies.
Both the cases were previously proved by Uttar Pradesh police but the state government decided to hand over the investigation to the central agency now.
Singh was arrested by the Enforcement Directorate in January this year but received bail from a court in the first week of April.
He is under investigation for money laundering in ponzi scheme-related irregularities worth ₹1,900 crore. His properties worth ₹239 crore have already been attached by the ED in 2019.
The ED probe against Singh and a firm linked to him (Ms Alchemist Infra Realty Limited) dates back to September, 2016 when ED filed a criminal case under the PMLA taking cognisance of a charge sheet filed against the company, its directors and others by market regulator SEBI.
“Investigation revealed that the proceeds of crime generated by Alchemist Infra Realty Ltd were laundered through a web of companies. Investigations also revealed that the funds mobilised by the firm from various investors were never utilised for the purpose for which they were collected and were transferred to bank accounts of other group companies which were mainly paper companies from where they were systematically siphoned off by the accused and used to purchase properties at various locations in the country. All such assets in Punjab, Haryana , Shimla and bank accounts in HDFC Bank worth ₹239.39 crore identified during the course of investigations have been provisionally attached,” the ED said in a statement in January 2019.
It has been alleged by the probe agencies that the company launched an illegal collective investment scheme, also called a ponzi or chit fund scheme, and mobilised funds of about ₹1,916 crore from the public in the years preceding 2015. The firm allegedly launched the scheme “without the approval” of the SEBI and led to cheating of gullible investors.
KD Singh’s legal representative could not be located for comment.