ED files PMLA chargesheet in Raipur Smart City fraud; ₹3.25 crore attached
Synopsis
A ₹15 crore fraud sold victims on a fictitious ₹500 crore Smart City sub-contract — then laundered the proceeds through shell firms to Dubai, Hong Kong, China and Singapore. The ED has now charged KK Srivastava under PMLA, attached ₹3.25 crore in assets, and is pursuing the full cross-border money trail in what is shaping up as a multi-jurisdictional laundering case.
Key Takeaways
The ED Raipur Zonal Office filed a PMLA chargesheet against Krishna Kumar Shrivastava (KK Srivastava) on 23 September 2026 .
Srivastava allegedly cheated M/s Rawat Associates of ₹15 crore by falsely promising a sub-contract in a ₹500 crore Raipur Smart City project .
Proceeds were laundered through shell entities and remitted to Dubai, Hong Kong, China and Singapore under fictitious freight and leasing descriptions.
Of the ₹15 crore, ₹3.4 crore was returned via tainted funds; ₹11.6 crore remains unrecovered.
The accused was arrested on 30 July 2026 under Section 19 of PMLA; properties worth ₹3.25 crore have been provisionally attached.
Further investigation is ongoing; the case originated from an FIR at Telibandha Police Station, Raipur .
The Enforcement Directorate's (ED) Raipur Zonal Office has filed a chargesheet before the Special Court under the Prevention of Money Laundering Act (PMLA), 2002 against Krishna Kumar Shrivastava, also known as KK Srivastava, in connection with an alleged ₹15 crore fraud linked to a Raipur Smart City project. The chargesheet was filed on 23 September 2026, a day after the ED issued a Provisional Attachment Order (PAO) freezing movable and immovable properties worth ₹3.25 crore belonging to the accused.
How the Fraud Was Carried Out
According to the ED, in June 2023, Srivastava allegedly induced the proprietor of M/s Rawat Associates to transfer ₹15 crore by falsely claiming that a Raipur Smart City project worth approximately ₹500 crore was available for sub-contract, and that the funds were required as performance security. The money was transferred to five bank accounts, details of which were reportedly shared over WhatsApp.
Investigators found that these accounts had been opened fraudulently, without the knowledge of the purported account holders. The entities listed as account owners did not exist at their registered addresses, pointing to a pre-planned network of fictitious entities.
Cross-Border Money Trail
The ED's investigation revealed that the proceeds of crime were layered through a web of shell and conduit entities before being remitted outside India. Funds were transferred to beneficiaries in Dubai (UAE), Hong Kong, China, and Singapore under fictitious commercial descriptions, including freight charges and container leasing — a common laundering technique, investigators noted.
Of the ₹15 crore cheated, ₹3.4 crore was returned to the victim from tainted and layered funds projected as genuine repayment. The remaining ₹11.6 crore has not been refunded.
Arrest, Remand and Asset Attachment
Krishna Kumar Shrivastava was arrested on 30 July 2026 under Section 19 of the PMLA, 2002. He was produced before the Special Court (PMLA) in Raipur, which remanded him to ED custody. Following due process, the ED provisionally attached properties worth ₹3.25 crore.
The chargesheet now formally seeks his prosecution for the offence of money laundering. Further investigation in the case is reportedly ongoing.
Background and Police Case
The ED's action stems from an FIR registered at Telibandha Police Station in Raipur, and a subsequent chargesheet filed by Chhattisgarh Police against Srivastava and others for offences including cheating, forgery, criminal intimidation, and criminal conspiracy. The Smart City project fraud is the latest in a series of infrastructure-linked financial crimes that have drawn central agency scrutiny in Chhattisgarh.
As the PMLA case advances before the Special Court, the ED's probe into the full network of shell entities and overseas beneficiaries could yield further arrests and attachments.
Point of View
Disperse funds through fictitious accounts, and remit overseas under trade covers. What stands out here is the speed of cross-border dispersal — funds moved to four jurisdictions before investigators could act. The ₹3.25 crore attachment against a ₹15 crore fraud also underscores a persistent gap in PMLA recoveries: attachment values routinely fall short of the original crime proceeds, raising questions about how much of the overseas money will ever return. With investigations ongoing, the real measure of this case will be whether the overseas beneficiaries in Dubai, Hong Kong, China and Singapore are ever formally identified.
NationPress
24 Sept 2026
Frequently Asked Questions
What is the Raipur Smart City fraud case?
It is a ₹15 crore cheating case in which accused Krishna Kumar Shrivastava allegedly convinced the proprietor of M/s Rawat Associates in June 2023 to transfer funds on the false promise of a sub-contract in a ₹500 crore Raipur Smart City project. The money was routed through fictitious bank accounts and shell entities before being sent overseas.
What action has the ED taken against KK Srivastava?
The ED arrested Srivastava on 30 July 2026 under Section 19 of the PMLA, provisionally attached properties worth ₹3.25 crore on 22 September 2026, and filed a PMLA chargesheet before the Special Court in Raipur on 23 September 2026 seeking his prosecution for money laundering.
Where was the fraud money sent?
According to the ED, the proceeds of crime were layered through shell and conduit entities and remitted to beneficiaries in Dubai (UAE), Hong Kong, China, and Singapore under fictitious commercial descriptions such as freight charges and container leasing.
How much money has been recovered or attached so far?
Properties worth ₹3.25 crore have been provisionally attached by the ED. Of the original ₹15 crore, ₹3.4 crore was returned to the victim — but via tainted, layered funds presented as genuine repayment. The remaining ₹11.6 crore is yet to be recovered.
What was the original police case behind the ED investigation?
The ED's probe was triggered by an FIR registered at Telibandha Police Station in Raipur, followed by a Chhattisgarh Police chargesheet against Srivastava and others for cheating, forgery, criminal intimidation, and criminal conspiracy.
