ED Freezes 182 Bank Accounts, Seizes ₹1 Crore in ₹2,000-Crore Chit Fund Scam

The Enforcement Directorate (ED) has frozen 182 bank accounts and seized ₹1.01 crore in cash and six luxury vehicles during searches linked to an alleged ₹2,000-crore multi-state chit fund scam, the agency said on Tuesday.

The ED’s Bhubaneswar Zonal Office conducted searches on August 5 under the Prevention of Money Laundering Act (PMLA) at five premises in Visakhapatnam and Hyderabad linked to Wellfare Buildings and Estates Pvt Ltd (WBEPL), its directors and other associates.

The premises of former Andhra Pradesh MLA Malla Vilaya Prasad, Varaha Ramakrishna Satya Sinivasa Rao Alla and others were also searched, according to the agency.

During the searches, officials recovered and seized ₹1.01 crore in Indian currency, along with property documents, digital devices and other incriminating material allegedly connected with WBEPL, its directors and related entities. The ED also issued freezing orders for 182 bank accounts and seized six high-end vehicles belonging to WBEPL and its directors.

The agency said its investigation was initiated following multiple FIRs and subsequent chargesheets filed by the Economic Offences Wing (EOW) of Odisha Police, the CBI and the Anti-Corruption Bureau (ACB) of Jharkhand.

According to the ED, WBEPL’s directors and managing director had allegedly collected more than ₹2,000 crore from thousands of investors across Odisha, West Bengal, Bihar, Jharkhand, Andhra Pradesh and other states.

The agency alleged that the company raised funds through various schemes by falsely promising investors land in Visakhapatnam. It later shut down branch offices across several states, leaving investors allegedly defrauded.

The ED further alleged that the accused diverted investors’ funds for unrelated purposes and personal gains, manipulated financial statements to conceal deposits and carried out irregular land transactions to suppress actual consideration and evade statutory obligations. The investigation is continuing, the agency said.