Bhubaneswar: The Enforcement Directorate (ED) Wednesday conducted searches at premises linked to former Andhra Pradesh MLA Malla Vijaya Prasad in connection with a multi-state chit fund scam, officials said.
The searches were carried out at seven locations in Visakhapatnam and Hyderabad as part of a money laundering investigation being conducted by the ED’s Bhubaneswar Zonal Office, an official of the agency told PTI.
The case pertains to an alleged chit fund fraud involving around Rs 3,000 crore, he said.
Welfare Building and Estates Pvt Ltd, of which the former Visakhapatnam West MLA was the managing director, allegedly collected deposits from investors in Odisha and other states between 2009 and 2014 by promising high returns under various investment schemes before defaulting, officials said.
The CBI had earlier registered a case against the company in connection with the alleged fraud. Several FIRs were also lodged by the Odisha Police, they said.
Prasad was arrested by the Economic Offences Wing (EOW) of Odisha Police from Visakhapatnam in 2021 in connection with the case and was subsequently released on bail, they added.
The ED is probing the alleged laundering of proceeds of crime generated through the chit fund operations, officials said.
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