India
Kolkata: ED raids gaming app firm, unearths Rs. 18 crore
The Enforcement Directorate (ED) raided six locations in Kolkata over allegations of money laundering on, mobile gaming application E-Nuggets and unearthed cash worth Rs. 18 crore. The ED registered a case against Aamir Khan, the proprietor of the app, and others following a complaint by Federal Bank authorities in February 2021. The app was mostly used during the pandemic to dupe many.
Why does this story matter?
- Around a month ago, the ED raided two flats of former state education minister Partha Chatterjee and seized around Rs. 50 crore cash while investigating alleged discrepancies in the recruitment of teaching and non-teaching staff in government schools.
- The ruling party Trinamool Congress (TMC) and the opposition BJP had engaged in trading charges regarding corruption and misusing State agencies to further political vendetta.
Cash recovered from accused's father's house
The search was conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 at the residence of businessman Nesar Ahmed Khan — father of accused Aamir — at Garden Reach in Kolkata's Port Area among others. Khan's family is in the transport business. The prime accused, in his thirties, is yet to be arrested, reported The Indian Express.
App initially rewarded users with commissions
The mobile application E-Nuggets launched by Khan allowed users to withdraw money from their digital wallets without hassle. It attracted more investors by initially rewarding them with a commission. Soon investors started pouring in and began investing larger sums hoping for higher commissions. When the collection became huge, the app operators wiped off all user data from their servers, embezzling the money, officials said.
BJP trying to scare away investors from state: TMC
The CPI(M) tried to corner the TMC with its senior leader Sujan Chakraborty saying, "The bigger the leader, the bigger the thief and that is the truth of Trinamool Congress." Meanwhile, TMC leader Firhad Hakim accused the BJP-ruled Centre of attempting to hurt West Bengal's economy by spreading fear among businessmen to discourage them from doing business in the state.
8 machines used to count seized cash
Currency notes of all denominations, from Rs. 100 to Rs. 2,000 were found stashed on the second floor of the house. Initially, the ED recovered Rs. 7 crore cash which went over Rs. 17 crore later in the day. Khan faces charges under IPC Sections 420, 406, 409, 468, 469, 471, and 34 which include cheating, forgery, and breach of trust, among others.
