Gaming App fraud: ED recovers over Rs 17 cr from city bizman's house

Kolkata: The Enforcement Directorate (ED) on Saturday recovered at least Rs 17 crore and some property documents from the house of a city-based businessman in Garden Reach, sources said. The accused Amir Khan is absconding.

The counting process of currency notes in Rs 500 and Rs 2,000 denominations continued till late Saturday evening and the recovered money till 10 pm was be to the tune of around Rs 17.50 crore, according to estimates of the central agency officials.

ED officials dividing themselves in groups raided six places across the city on Saturday in connection with an investigation linked to an alleged case of fraud through a mobile gaming App.

On Saturday morning, the ED teams, accompanied by the central forces personnel, started from the agency's office (CGO) complex office at Salt Lake. The first team reached the residence of an advocate at a multi-storied housing complex at 34 Macleod Street, while the second team conducted a raid at the house of businessman Amir Khan in Garden Reach. The ED officers discovered a huge trunk, where currency notes of Rs 500 and Rs 2,000 denomination were reserved.

ED started counting the currency notes at around 8.30 am taking the help of machines at the premise of a businessman and recovered huge cash possibly linked with mobile gaming App —E-Nuggets fraud, suspects the investigating agency. The counting of currency notes continued till about 10 pm. The ED officials interrogated some of the family members of the businessman in this connection. The ED officials carried out raids at Park Street, Mominpur, New Town.

The central agency carried out the operations under the provisions of the Prevention of Money Laundering Act (PMLA). An FIR was filed against the company and its promoters in February 2021 at the Park Street Police Station after a complaint filed by the Federal Bank authorities before a court in Kolkata, the ED said.

It was stated that during the initial period, the users were rewarded with a commission and the balance in the wallet could be withdrawn hassle-free. It provided confidence among users and they started investing bigger amounts for a greater percentage of commission. After collecting a large amount from the public, the app stoped functioning citing one or the other reason. Later, all the data disappeared. It is under investigation whether the promoters had any link with "Chinese controlled" apps which give loans at exorbitant interest rates to gullible persons an ED official said.