Due to the fraudulent mobilization of approximately Rs. 1600 crore from investors who were deceived by false claims of guaranteed high returns via numerous businesses owned by the defendants, these assets were discovered to be proceeds of crime throughout the inquiry.
In accordance with the Prevention of Money Laundering Act (PMLA), 2002, the Enforcement Directorate has attached 212 immovable properties worth more than Rs 155 crore as part of the ongoing investigation against LFS Broking Pvt Ltd., its affiliated businesses, and individuals, including Saiyad Jiyajur Rahaman, the agency announced in a press release.
According to ED, the assets connected include industrial plots, hotels, resorts, residences, and land parcels spread over many districts in West Bengal and other states.
According to the ED, these assets were discovered throughout the inquiry as proceeds of crime that came from the illegal mobilization of over Rs. 1600 crore from investors who were duped by the accused individuals’ control over a number of organizations that promised them huge profits.
Based on FIRs filed by West Bengal Police against LFS Broking, Saiyad Jiyajur Rahaman, and others under different sections of the IPC, 1860, the ED began an inquiry. Additionally, Saiyad Jiyajur Rahman and the LFS group have been the subject of several FIRs in the states of Gujarat, Odisha, and Maharashtra.
According to an ED investigation, the masterminds—Saiyad Jiyajur Rahaman, Dilip Kumar Maity, Md. Anarul Islam, and their associates—managed illegal investment schemes by falsifying SEBI registration certificates and utilizing a network of organizations to gather and transfer investor funds under the pretense of offering them guaranteed monthly returns on their investments between two and three percent.
Under the pretense of M/s LFS Broking Pvt. Ltd., a firm registered with SEBI for share broking and other investment operations, the accused ran the illicit enterprise. They did, however, intentionally launch a number of other companies with names that were similar to M/s LFS Broking Pvt. Ltd.. Investors were tricked into thinking they were funding the SEBI-registered business, but in reality, their money was transferred to companies with similar names, such as PMS Services and LFS Broking, among others.
The mastermind, Saiyad Jiyajur Rahaman, was one of six people the ED had previously detained in connection with the investigation. They are under judicial custody at the moment. Additionally, the Hon’ble Special Court in Kolkata has received a prosecution complaint against ten of the defendants in this case.