ED raids Bengal locations in chit fund, crypto fraud probe
Synopsis
The ED has fanned out across West Bengal — hitting Howrah, Nadia, and West Burdwan in a single day — targeting a fraud network that blends old-school chit fund deception with crypto investments and suspected overseas money laundering. The sweep signals that investigators have followed a money trail stretching from a Kolkata office in Fairlie Place to a Dubai-linked businessman.
Key Takeaways
The Enforcement Directorate (ED) raided multiple locations across West Bengal on 9 July in a chit fund and crypto fraud investigation.
Dilip Mallick and his son Diganta Mallick , accused of defrauding investors via cryptocurrency schemes, were among those targeted in Andal, West Burdwan .
Diganta Mallick had been arrested previously and released on bail; large money transactions were reportedly found in his bank account.
Investigators allege links to a Dubai -based businessman and suspect funds were laundered abroad.
Sourav Chatterjee of Howrah is allegedly linked to multiple chit fund and share market companies.
Businessman Subhra Kanti Nag (alias Babai Nag ) of Nadia allegedly ran a fraudulent investment scheme under the name 'Stock Gurukul' .
The Enforcement Directorate (ED) on Thursday, 9 July conducted searches at multiple locations across West Bengal as part of an ongoing investigation into an alleged chit fund-linked fraud encompassing cryptocurrency investments, stock market training schemes, and suspected money laundering. Central forces were deployed at all search sites during the operations.
Key Locations Raided
One of the searches targeted the residence of Dilip Mallick, a former employee of Eastern Coalfields Limited (ECL), at Sripalli Subhashnagar Riksadangal in Andal, West Burdwan district. Searches were simultaneously carried out at the house of Sourav Chatterjee, a resident of Kuchil Sarkar Lane under Batra police station in Howrah district, and at premises linked to businessman Subhra Kanti Nag, also known as Babai Nag, of Kalinarayanpur in Nadia district.
The Crypto Fraud Allegations
Dilip Mallick and his son Diganta Mallick are accused of defrauding investors of crores of rupees through cryptocurrency schemes. According to agency sources, the duo allegedly operated an office at Fairlie Place in Kolkata, using it to solicit public investment in crypto assets. Diganta allegedly amplified the scheme through extensive social media promotions to attract victims.
Investigators reportedly found traces of large-scale money transactions in Diganta's bank account, which triggered Thursday's raid on the Andal residence. According to sources, the accused have alleged links with a businessman based in Dubai, and there are suspicions that funds were laundered abroad. Notably, Diganta had been arrested previously in connection with the case and was subsequently released on bail.
Chit Fund and Stock Market Scheme Angle
Sourav Chatterjee of Howrah is allegedly associated with multiple chit fund companies and share market businesses, according to agency sources. The ED's probe into his activities forms part of the broader financial fraud investigation sweeping the state.
Separately, businessman Subhra Kanti Nag is accused of operating a fraudulent chit fund operation disguised as a stock market training and investment enterprise. His company, named 'Stock Gurukul', faces allegations of embezzlement and fraud, with investigators probing how funds collected from clients were utilised.
Broader Context
This comes amid a sustained push by the ED to dismantle chit fund fraud networks in West Bengal — a state that has seen a series of high-profile financial scams over the past decade, including the Saradha and Rose Valley cases that collectively affected millions of small investors. The convergence of traditional chit fund structures with newer instruments such as cryptocurrency and social media-driven investment schemes represents an evolving challenge for enforcement agencies. Thursday's multi-location operation signals that the probe has widened to cover both old-economy fraud patterns and digital-era money trails.
Further developments are expected as the agency analyses documents and digital records seized during the searches.
Point of View
Making money trails harder to trace and victims harder to identify. The Dubai connection — if substantiated — would add a cross-border money laundering dimension that complicates prosecution timelines significantly. The ED's decision to deploy central forces at search sites also underscores the agency's assessment of the risk environment in the state, a detail mainstream coverage has largely glossed over.
NationPress
9 Jul 2026
Frequently Asked Questions
Why did the ED raid multiple locations in West Bengal on 9 July?
The ED conducted searches across West Bengal on 9 July as part of an ongoing investigation into alleged chit fund fraud linked to cryptocurrency investments, stock market training schemes, and suspected money laundering. The agency targeted individuals in West Burdwan, Howrah, and Nadia districts.
Who is Diganta Mallick and what is he accused of?
Diganta Mallick is the son of former Eastern Coalfields Limited employee Dilip Mallick. He is accused of defrauding investors of crores of rupees by soliciting cryptocurrency investments through an office in Kolkata's Fairlie Place and via social media promotions. He was previously arrested and later released on bail.
What is 'Stock Gurukul' and why is it under investigation?
'Stock Gurukul' is a company run by businessman Subhra Kanti Nag, also known as Babai Nag, of Nadia district. It allegedly operated as a fraudulent chit fund disguised as a stock market training and investment firm, with allegations of embezzlement and fraud against it.
Is there a foreign connection in the Bengal chit fund-crypto case?
According to agency sources, the accused have alleged links with a businessman based in Dubai, and investigators suspect that funds may have been laundered abroad. These allegations are part of the ongoing ED probe and have not been conclusively established in court.
How does this probe connect to West Bengal's history of chit fund scams?
West Bengal has seen a series of major chit fund frauds over the past decade, including the Saradha and Rose Valley cases that affected millions of investors. The current ED investigation suggests a newer wave of fraud combining traditional chit fund structures with cryptocurrency and social media-driven schemes.
