Chit fund scam: ED carries out searches in Vizag, Hyderabad.jpg

Visakhapatnam: The Enforcement Directorate (ED) on Wednesday carried out searches at multiple locations in Visakhapatnam and Hyderabad as part of an ongoing money laundering investigation into the alleged Rs 3,000-crore multi-state chit fund scam, involving the Wellfare Group of Companies. 

The searches targeted the residences, offices and other premises associated with former Visakhapatnam West MLA and YSRCP leader Malla Vijaya Prasad, who is also the chairman of Wellfare Group. 

ED officials conducted searches at around seven locations under the supervision of the Bhubaneswar zonal office with support from teams drawn from other regions, including Bihar. 

Tight security arrangements were made at all the raided premises, with personnel from the Central Reserve Police Force (CRPF) and local police deployed to ensure the smooth conduct of the operation. 

According to the investigation, the Wellfare Group allegedly mobilised deposits from thousands of investors between 2009 and 2014 by promising high returns and is accused of defrauding them of nearly Rs.3,000 crore. 

The money laundering probe stems from multiple First Information Reports (FIRs) registered by various state police agencies and the Central Bureau of Investigation (CBI). 

Malla Vijaya Prasad was earlier arrested in 2021 by the Odisha Economic Offences Wing (EOW) in connection with the alleged scam. 

As part of the ongoing investigation, ED officials are scrutinising seized financial records, electronic data and digital devices to trace the alleged diversion and layering of funds and identify along with the financial trail linked to the case.