Ponzi scam: ED seizes TMC MP KD Singh's properties worth Rs 238 crore

The Enforcement Directorate (ED) on Monday seized properties of Trinamool Congress MP K D Singh to the tune of Rs 238 crore in connection with its money laundering probe into an alleged ponzi scam case.

KD Singh (Source: PTI)

New Delhi: The Enforcement Directorate (ED) on Monday seized properties of Trinamool Congress MP K D Singh to the tune of Rs 238 crore in connection with its money laundering probe into an alleged ponzi scam case. The properties seized by the ED included a resort in Kufri, a showroom in Chandigarh, properties in Panchkula and Haryana, and several bank accounts. The EDs started off investigation against Singh and his firm Ms Alchemist Infra Realty Limited, back in 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. It is alleged that the company 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 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 Rs 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.