Enforcement Directorate investigates Rs 2,000 crore WBEPL chit fund scam

The Enforcement Directorate (ED) has conducted searches at five residential and business locations in Visakhapatnam and Hyderabad linked to M/s Welfare Buildings and Estates Pvt. Ltd. (WBEPL). The operations, carried out by the Bhubaneswar Zonal Office, are part of an investigation into an alleged Rs 2,000 crore chit fund scam.

Investigators allege that WBEPL operated a large-scale deposit mobilisation scheme disguised as a real estate business. The company reportedly collected over Rs 2,000 crore from the public in violation of statutory provisions, using funds from new investors to repay earlier ones while diverting other amounts for personal gain. The scheme allegedly targeted thousands of investors across Odisha, West Bengal, Bihar, Jharkhand, and Andhra Pradesh.

During the searches, the ED seized Rs 1.01 crore in cash, various digital devices, and documents related to movable and immovable properties. Additionally, the agency froze 182 bank accounts and seized six luxury vehicles belonging to the company and its directors, including Malla Vijaya Prasad and Varaha Ramakrishna Satya Srinivasa Rao Alla. The probe follows multiple FIRs and chargesheets from the Economic Offences Wing, CBI, and the Serious Fraud Investigation Office.