The Enforcement Directorate on Saturday said it has seized over Rs 7 crore after it carried out searches at six locations in Kolkata in connection with an investigation into a money laundering case against promoters of mobile gaming application named E-Nuggets, reported PTI.
The cash was seized from the home of Kolkata-based businessman Nisar Ahmed Khan, whose son, Aamir Khan, had launched the app to defraud the public, the central agency alleged.
The app initially rewarded investors with a commission and allowed an easy withdrawal of the balance from their wallets, officials told The Indian Express. But as users began investing larger amounts in the hopes of getting higher returns, they were prevented from making withdrawals.
The data of all the users was also wiped off the app’s servers, according to Enforcement Directorate officials.
On Saturday, the Enforcement Directorate carried out searches under provisions of the Prevention of Money Laundering Act. On February 15, 2021, the Kolkata Police had registered a case against Aamir Khan based on a complaint filed by the Federal Bank authorities before a court in the city.
West Bengal minister and Mayor of Kolkata Municipal Corporation Firhad Hakim said the raids have no connection with politics and the ruling Trinamool Congress has nothing to do with the businessman.
“If Rs 7 crore has been unearthed, the source of that money should certainly be investigated,” he added. “But what about Nirav Modi and Mehul Choksi who had swindled more than Rs 7,000 crore? Why did their wrongdoing not come to light before they left [India]?”
Hakim added that there are businessmen in Bharatiya Janata Party-ruled states and they might have also amassed large amounts of money.
“Does that mean that the raids will be directed selectively against businessmen of non-BJP ruled states like Bengal?” the Trinamool Congress leader asked. “It is for dissuading investors from coming to Bengal in the fear of harassment by central agencies.”
Meanwhile, the Enforcement Directorate said that it is also investigating if the operators of E-Nuggets had links with other “Chinese-controlled” apps that had been issuing loans at high interest rates, reported PTI.
In recent months, several cases have come up where users who are unable to pay off these high-interest loans from non-banking financial companies are blackmailed through manipulation of the data acquired by the apps.
The Enforcement Directorate is investigating cases of non-banking financial companies that have allegedly indulged in predatory lending practices in violation of the guidelines set by the Reserve Bank of India, reported Mint.
On Friday, Finance Minister Nirmala Sitharaman asked the central bank to prepare a list of digital lending apps to stamp out those using unethical means to exploit vulnerable customers.
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