The Enforcement Directorate (ED) has attached 212 immovable assets valued at over ₹155 crore in connection with its money laundering probe into the multi-crore LFS Broking Pvt. Ltd. scam. The attachments, made under the Prevention of Money Laundering Act (PMLA), 2002, cover a wide range of properties, including plots of land, residential flats, hotels, resorts, and factory sites located across several districts in West Bengal and other states.
Proceeds of Crime from Fraudulent Investment Schemes
According to the ED, the properties were traced to be “proceeds of crime” generated from an elaborate investment fraud exceeding ₹1,600 crore. Investors were lured with the assurance of guaranteed monthly returns of 2–3%, a promise which was never fulfilled. The money collected was diverted through a web of entities controlled by the accused.
The investigation was initiated following a series of FIRs filed by the West Bengal Police under provisions of the Indian Penal Code (IPC) against LFS Broking Pvt. Ltd., its promoters, and associates, including the alleged kingpin Saiyad Jiyajur Rahaman. Parallel complaints were also registered in Gujarat, Odisha, and Maharashtra, highlighting the pan-India spread of the alleged fraud.
Findings of the Investigation
The ED probe revealed that Rahaman, along with his close aides Dilip Kumar Maity and Md. Anarul Islam, devised and operated illegal investment schemes by misusing and manipulating SEBI registration certificates.
- The group floated multiple companies with names strikingly similar to LFS Broking Pvt. Ltd., a legitimately SEBI-registered entity engaged in share broking.
- Unsuspecting investors were misled into believing that their money was being invested through the authentic SEBI-approved platform.
- In reality, the funds were siphoned off into lookalike firms such as LFS Broking and PMS Services, which had no valid regulatory backing.
Arrests Made in the Case
The ED has so far arrested six persons in connection with the fraud, including mastermind Saiyad Jiyajur Rahaman. All the accused are currently lodged in judicial custody as the investigation continues.
Officials noted that the scheme was a classic Ponzi-style operation, with early investors being paid from the funds deposited by new investors, until the system eventually collapsed.
Scale of the Scam
The scam, estimated at over ₹1,600 crore, is among the major financial frauds unearthed in recent years, particularly in eastern India. The agency has stated that the attachment of properties worth ₹155 crore is only an initial step, and further assets may be identified as the investigation progresses.
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