ED freezes 182 bank accounts, seizes ₹1 cr cash in connection to ₹2k crore chit-fund scam

Bhubaneswar - The Enforcement Directorate (ED) has seized control of 182 bank accounts and confiscated over ₹1 crore in cash and six luxury vehicles during a search operation linked to a ₹2,000 crore multi-state chit fund scam, officials announced on Tuesday. The ED's Bhubaneswar Zonal Office conducted the raids on August 5 at five premises associated with Wellfare Buildings and Estates Pvt Ltd (WBEPL) and its directors in Visakhapatnam and Hyderabad.

The investigation targeted ex-Andhra Pradesh MLA Malla Vilaya Prasad, Varaha Ramakrishna Satya Sinivasa Rao Alla, and others. During the operation, ₹1.01 crore in cash, along with various movable and immovable properties and incriminating materials, were seized from WBEPL and its directors. The ED also issued freezing orders for 182 bank accounts belonging to the company and its directors.

The ED's probe began following numerous First Information Reports (FIRs) and subsequent chargesheets filed by the Economic Offences Wing of Odisha Police, the Central Bureau of Investigation (CBI), and the Anti-Corruption Bureau (ACB) in Jharkhand. The agency discovered that WBEPL's directors and managing director amassed more than ₹2,000 crore in unauthorized funds from thousands of unsuspecting investors from multiple states, including Odisha, West Bengal, Bihar, Jharkhand, and Andhra Pradesh, using deceptive schemes that falsely promised land in Visakhapatnam.

Subsequently, WBEPL closed its branch offices across India, defrauding investors and diverting their funds for unrelated purposes and personal gain. The directors manipulated financial statements to conceal deposits and orchestrated irregular land transactions to suppress the true consideration and evade legal obligations.