The Enforcement Directorate (ED) on Saturday seized over Rs 7 crore in cash in raids on the promoters of a mobile gaming company in West Bengal's Kolkata.
The ED on Saturday said it raided six locations of the mobile gaming app E-Nuggets and its promoters Aamir Khan and others. It added that the counting of the seized cash is ongoing and Rs 7 crore have so far been counted.
A photograph released by the ED showed bundles of Rs 500 notes along Rs 2,000 and Rs 200 notes stacked together on a bed.
The money laundering case currently investigated by ED stems from an FIR filed by the Kolkata Police against the company and its promoters in February 2021. This FIR was registered at the Park Street Police Station based on a complaint filed by the Federal Bank authorities before a court in Kolkata, the ED said.
The ED has alleged that Khan, son of businessman Nesar Ahmed Khan, launched the mobile gaming application E-Nuggets to defraud the public.
"During the initial period, the users were rewarded with a commission and the balance in the wallet could be withdrawn hassle-free. This provided initial confidence among users, and they started investing bigger amounts for a greater percentage of commission and a greater number of purchase orders," said ED.
The ED said that after collecting a "handsome amount" from the public, withdrawal from the said app was stopped all of a sudden under one pretext or the other, such as system upgradation and investigation by law enforcement agencies.
Official sources said the ED is investigating if this app and its operators had links with other "Chinese controlled" apps that had been issuing loans at exorbitant rates to gullible persons and in many cases, the loan-takers died by suicide after they were harassed by loan operators.
ED probe into Chinese-controlled apps
While no connection between the app under investigation in Kolkata and "Chinese controlled" loan apps has emerged, the angle is being investigated by ED.
The ED is already investigating the Chinese loan apps. It recently visited premises of payment gateway companies Paytm, Razorpay, and Cashfree in Bengaluru in the case.
The ED is investigating smartphone-based instant loans given by a number of apps and the investigation stems from at least 18 FIRs registered by the Bengaluru Police against "numerous entities/persons in connection with their involvement in extortion and harassment of the public who had availed small amount of loans through the mobile apps being run by those entities/persons".
Such instant loan apps bypass regulatory framework and lend money at a short notice. They charge high interest and high processing fee. Later they harass people to repay the amount. At least two dozen people have died by suicide from this alleged harassment, according to reports.
BJP-TMC's war of words over ED raids
While no political association has so far emerged in the case, Bengal's ruling Trinamool Congress (TMC) and the Bharatiya Janata Party (BJP) have sparred over the raids.
Senior TMC minister and Kolkata Mayor Firhad Hakim said the raid has no connection with politics and the TMC has nothing to do with the businessman concerned. He, however, wondered if the ED’s investigations into money laundering cases are restricted to states ruled by non-BJP parties like West Bengal.
Hakim said, "If Rs 7 crore has been unearthed, the source of that money should certainly be investigated. But what about Nirav Modi and Mehul Choksi who had swindled more than Rs 7000 crore? Why did their wrongdoing not come to light before they left (India)?”
There are businessmen in BJP-ruled states and they might also have amassed large amounts of money, he said.
“Does that mean that the raids will be directed selectively against businessmen of non-BJP ruled states like Bengal? It is for dissuading investors from coming to Bengal in the fear of harassment by central agencies," said Hakim.
Reacting to Hakim's comments, BJP state spokesperson Samik Bhattacharya claimed that such statements come from fear as people are aware of the “unholy nexus” between money launderers and the TMC.
"The ED raid is not directed against the business community in general. It is only against unscrupulous businessmen. Does the former state transport minister has anything to hide?" Bhattacharya added.
(With PTI inputs)
