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ED Raids Ex-YSRCP MLA's Premises in Chit Fund Fraud Probe
Officers from a special Indian agency that investigates money crimes visited the home of a former politician named Malla Vijayaprasad.
He used to be a member of the state assembly.
The officers searched his house and other places to look for evidence.
A company linked to him collected money from people and promised them big profits.
The company is accused of cheating people between 2009 and 2014.
This kind of fraud is called a chit fund scam, and it affected more than one state.
People may have lost nearly Rs 3,000 crore, which is a huge amount of money.
Mr. Vijayaprasad was arrested in 2021 because of this case.
He was later released on bail, meaning he promised to appear in court when needed.
The officers are now checking documents and computers to find out where the money went.
The Enforcement Directorate (ED) on Wednesday searched premises linked to former YSRCP MLA Malla Vijayaprasad.
The searches covered his residence in Seethammadhara, Visakhapatnam, plus other locations in Visakhapatnam and Hyderabad, with reports citing five to around seven sites.
The action is part of a money laundering investigation into an alleged multi-state chit fund scam involving the Wellfare Group of Companies, also referred to as Welfare Buildings and Estates Private Limited.
The company allegedly collected public investments between 2009 and 2014 by promising high returns and is accused of defrauding investors of nearly Rs 3,000 crore.
Vijayaprasad was arrested by the Odisha Economic Offences Wing in 2021 and later released on bail; the probe also stems from FIRs registered by state police agencies and the CBI.
- Who
- The Enforcement Directorate (ED) and former YSRCP MLA Malla Vijayaprasad, chairman of the Wellfare Group and Managing Director of Welfare Buildings and Estates Private Limited.
- What
- ED searches of Vijayaprasad's residence and other premises as part of a money laundering probe into an alleged multi-state chit fund scam.
- Where
- Seethammadhara in Visakhapatnam, along with other locations in Visakhapatnam and Hyderabad.
- When
- Wednesday, the day the reports were filed.
- Why
- In connection with cases registered by the Odisha Economic Offences Wing and FIRs from state police agencies and the CBI alleging the company collected public investments from 2009 to 2014 by promising high returns.
Key facts
- Investigating Agency
- Enforcement Directorate (ED)
- Subject
- Malla Vijayaprasad, former YSRCP MLA
- Organizations
- Wellfare Group of Companies; Welfare Buildings and Estates Private Limited
- Alleged Fraud Amount
- Nearly Rs 3,000 crore
- Alleged Investment Period
- 2009–2014
- Locations Searched
- Seethammadhara, Visakhapatnam; multiple sites in Visakhapatnam and Hyderabad (five to around seven per reports)
- Prior Arrest
- Arrested by Odisha EOW in 2021; later released on bail
- Case Origin
- Cases by Odisha EOW; FIRs by state police agencies and the CBI
Sources
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