Former Rajya Sabha MP KD Singh arrested by ED in money laundering case
KD Singh was questioned by the Central Bureau of Investigation (CBI) in Narada sting probe as well.
Former Rajya Sabha MP KD Singh was on Wednesday arrested by the Enforcement Directorate (ED) in connection with a money laundering case.
Reacting on the same, TMC MP Sougata Roy said, "I don't want to comment. Neither is KD Singh with the TMC anymore nor he is a MP now."
The ED probe against Singh and a firm linked to him (Ms Alchemist Infra Realty Limited) dates back to September, 2016 when it 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 the 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 the same 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.
In 2015, the firm had informed the SEBI that it had refunded ₹1,077 crore after the market regulators investigation and had sought more time to restore the rest of the amount, which was turned down by the SEBI. Subsequently, a charge sheet was filed by the SEBI in March, 2016.
Singh was questioned by the Central Bureau of Investigation (CBI) in Narada sting probe as well.
