Why Did ED Attach Rs 127.3 Cr Shares Linked to Alchemist Group?
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Synopsis
In a significant development, the Enforcement Directorate has provisionally seized shares worth Rs 127.3 crore tied to Alchemist Hospital and Ojas Hospital amid a money laundering investigation into the Alchemist Group. This move highlights ongoing concerns regarding investor fraud and misuse of public funds.
Key Takeaways
- ED has provisionally attached shares worth Rs 127.3 crore.
- Linked to Alchemist Hospital and Ojas Hospital.
- Part of a broader money laundering investigation.
- Allegations include fraudulent Collective Investment Schemes.
- Kanwar Deep Singh has been previously arrested.
New Delhi, Oct 31 (NationPress) The Enforcement Directorate (ED) has provisionally attached shares valued at Rs 127.3 crore, associated with two medical facilities - Alchemist Hospital and Ojas Hospital in Panchkula. This action is part of a comprehensive money laundering investigation concerning the Alchemist Group, as confirmed by the agency on Friday.
The attached properties are beneficially owned by businessman Karan Deep Singh. The ED's Delhi Zonal Office issued the order under the Prevention of Money Laundering Act (PMLA), 2002, on October 30, 2025.
This operation is linked to an inquiry into alleged extensive financial fraud and misappropriation of public resources by the group's promoters and affiliated companies.
The ED launched its investigation following an FIR filed by the Kolkata Police, which was subsequently taken over by the Central Bureau of Investigation (CBI), ACB Lucknow, under Sections 120-B and 420 of the IPC. The investigation targets Alchemist Township Pvt. Ltd., Alchemist Infra Realty Pvt. Ltd., their directors, and former Rajya Sabha MP and group chairman Kanwar Deep Singh.
According to the ED, the case revolves around a significant criminal conspiracy aimed at defrauding investors through the illegal collection of funds via deceptive Collective Investment Schemes (CIS), promising unrealistically high returns and/or making false commitments regarding the allocation of plots, flats, and villas.
The agency claims that Alchemist Holdings Ltd. and Alchemist Township India Ltd. accumulated around Rs 1,848 crore through these schemes, illicitly diverting the funds for unauthorized purposes.
The ED investigation has uncovered that the misappropriated funds underwent systematic layering through intricate financial transactions involving entities within the Alchemist Group, aimed at obscuring the illegal origins of the funds.
Ultimately, these tainted proceeds were utilized for acquiring shares and constructing Alchemist Hospital and Ojas Hospital. The transactions were intentionally structured to present these assets as legitimate, thus concealing the Proceeds of Crime (POC), the agency added.
The ED states that the shares of Alchemist Hospital and Ojas Hospital are held to the extent of 40.93% and 37.23%, respectively, by M/s Placid Estate Pvt. Ltd., a company beneficially owned by Kanwar Deep Singh.
The assets of Alchemist Hospital and Ojas Hospital, held by M/s. Placid Estate Pvt. Ltd. and valued at Rs 127.3 crore, have been attached in the current provisional attachment order.
Additionally, the ED noted that it had previously arrested Kanwar Deep Singh on January 12, 2021.
A prosecution complaint was lodged on March 2, 2021, supplemented by two additional complaints in July 2024 and September 2025. To date, assets valued at Rs 365.42 crore have been attached in the case through previous orders, including shares held by Sorus Agritech Pvt. Ltd. in the same hospitals.
Further investigations are ongoing.
Point of View
I believe the ongoing investigation into the Alchemist Group underscores the pressing need for financial transparency and accountability. The actions taken by the ED reflect a commitment to addressing issues of investor fraud and safeguarding public trust in financial institutions.
NationPress
02/11/2025
Frequently Asked Questions
What is the reason behind the ED's action?
The ED has provisionally attached shares worth Rs 127.3 crore linked to the Alchemist Group as part of a money laundering investigation related to claims of large-scale financial fraud.
Who is Karan Deep Singh?
Karan Deep Singh is a businessman who beneficially owns the properties linked to Alchemist Hospital and Ojas Hospital.
What is the significance of the PMLA?
The Prevention of Money Laundering Act (PMLA) provides a legal framework for the ED to investigate and take action against money laundering activities.
What are Collective Investment Schemes?
Collective Investment Schemes are investment schemes where funds are pooled from multiple investors, but in this case, they were allegedly used fraudulently by the Alchemist Group to promise unrealistic returns.
What further actions can be expected?
As the investigation continues, more assets may be seized and further legal proceedings are likely against those implicated in the fraud.
