Chit Fund Scam: ED Files Supplementary Prosecution Complaint Against ex-BJD MLA

BHUBANESWAR: The Enforcement Directorate (ED) on Tuesday informed that it has filed second supplementary prosecution complaint on against the former Cuttack MLA Pravat Ranjan Biswal, his wife Laxmi Bilasani Biswal, Seashore Securities Ltd., Seashore Multipurpose Co-operative Ltd, their two directors Prashanta Kumar Dash and Pravat Kumar Dash; and three others before a Special Court (PMLA), in Bhubaneshwar in connection with the multi-crore chit fund scam.

The Court has taken cognisance of the prosecution complaint, the ED said.

The ED had earlier filed a prosecution complaint in this case in 2016 and a supplementary complaint was also filed in 2017.

The ED initiated PMLA investigation based on a first information report (FIR) registered by the Economic Offences Wing (EOW) of Crime Branch of Odisha Police wherein, charge sheet was also filed subsequently, under various sections of the Indian Penal Code (IPC), Prize Chits and Money Circulation Schemes (Banning) Act, and Odisha Protection of Interest of Depositors (in Financial Establishments) Act.

The investigation was later on taken up by the Central Bureau of Investigation (CBI) following the order of the High Court of Orissa.

The ED investigation revealed that Seashore Group of companies had collected huge funds from the public through their registered cooperatives and these funds were further diverted to their other shell companies and various related individuals for concealing the source of such funds and thereby layering the same.

The proceeds of crime were also channelised through the accused persons as named in the supplementary complaint filed by ED.

ED said that further investigation in the matter was underway.

More than 190 chit fund firms have allegedly swindled over Rs 32,000 crore from small depositors in Odisha in the pretext of giving them high returns on their investments.