ED raids 8 Kolkata locations in chit fund scam, CAPF teams deployed
Synopsis
The ED hit eight South Kolkata locations on Monday — its second major strike in this chit fund case within a month. Thousands of investors were allegedly defrauded through an MLM scheme whose proceeds were reportedly parked in politically connected real estate. The probe has now crossed state lines, signalling this is bigger than a local fraud.
Key Takeaways
The Enforcement Directorate (ED) raided eight locations in Kolkata on 12 October 2026 in a chit fund scam case.
CAPF personnel accompanied ED teams; searches focused on South Kolkata , including Tollygunge and Sarat Bose Road .
The chit fund entity allegedly used an MLM structure to lure investors with promised returns before defaults caused severe losses .
Funds were reportedly funnelled into real estate projects linked to promoters close to West Bengal's previous ruling dispensation .
Monday's raids followed an operation last month that uncovered documents showing the entity's activities had spread to multiple states .
The ED has been conducting regular operations in West Bengal across money laundering and bank loan fraud cases for several months.
The Enforcement Directorate (ED) on Monday, 12 October 2026, launched simultaneous raids and search operations across eight locations in Kolkata in connection with a major chit fund scam in West Bengal. Central Armed Police Forces (CAPF) personnel accompanied the ED teams during the operation.
How the Scam Operated
According to sources aware of the development, the chit fund entity lured thousands of investors into a multi-level marketing (MLM) scheme by promising unusually lucrative returns. Initially, select investors received the promised payouts — a tactic that encouraged them to deepen their investments.
Returns stopped flowing gradually, resulting in severe financial losses for investors. The money collected from investors was subsequently alleged to have been illegally channelled into real estate projects in the city, reportedly run by promoters with close ties to the previous ruling dispensation in West Bengal.
Key Locations Under the Scanner
The eight locations targeted on Monday are primarily concentrated in South Kolkata, with areas including Tollygunge and Sarat Bose Road falling under the search operations, according to sources. The raids commenced in the morning and were ongoing at the time of reporting.
Connection to Last Month's Operation
This is not the ED's first strike in the case. Last month, the agency had raided various offices of the investment company as well as the residences of several company officials. During those searches, investigators reportedly examined transaction records and bank-related documents of the entity.
That operation revealed that while the chit fund entity originated in Kolkata, its activities had spread to multiple other states as well. Monday's raids are being carried out on the basis of intelligence gathered during those earlier searches, sources said.
Broader Pattern of ED Activity in West Bengal
Notably, this latest operation is part of a broader surge in ED activity in West Bengal. For several months now, the central agency has been conducting regular raids in the state across multiple cases, including those related to money laundering and bank loan fraud. Further details from Monday's operation are awaited as the searches remain in progress.
The case underscores a recurring vulnerability in Bengal's unregulated investment space, where MLM-linked chit fund entities have historically exploited trust networks to amass investor funds before collapsing.
Point of View
But a trail that has crossed state borders. What demands scrutiny is the alleged link between investor funds and real estate projects tied to politically influential figures; that dimension could make this far more than a routine financial fraud case. Bengal's chit fund problem has a long and unaddressed history, and the pattern of initial payouts luring deeper investment is precisely the same playbook used in the Saradha collapse. The question is whether the current investigation has the political insulation and evidentiary depth to bring the real beneficiaries — not just company officials — to account.
NationPress
12 Oct 2026
Frequently Asked Questions
Why is the ED raiding locations in Kolkata today?
The ED is conducting raids at eight locations in Kolkata on 12 October 2026 in connection with a major chit fund scam in West Bengal. The agency is probing alleged money laundering linked to an MLM-based investment scheme that defrauded thousands of investors.
What areas in Kolkata are being searched by the ED?
The searches are concentrated in South Kolkata, primarily in areas including Tollygunge and Sarat Bose Road, according to sources. Eight locations in total are being searched simultaneously.
How did the chit fund scam allegedly work?
The entity reportedly promised lucrative returns under a multi-level marketing scheme, paying out some investors initially to build credibility and encourage larger deposits. Returns eventually stopped, causing severe losses; the collected funds were allegedly invested illegally in real estate projects linked to politically influential promoters.
Is this the first ED action in this case?
No. The ED conducted an earlier round of raids last month, targeting company offices and officials' residences. Documents examined then revealed the entity had spread operations beyond West Bengal to other states, prompting Monday's follow-up operation.
What is the broader context of ED activity in West Bengal?
For several months, the ED has been conducting regular raids in West Bengal across multiple cases involving money laundering and bank loan fraud. This chit fund operation is part of a wider investigative push by the central agency in the state.
