Synopsis
The Enforcement Directorate (ED) has launched extensive raids at various sites associated with former Rajasthan Minister Pratap Singh Khachariyawas, investigating his potential link to the Rs 48,100 crore PACL scam, one of India's largest financial frauds affecting millions of investors.Key Takeaways
- ED raids linked to Pratap Khachariyawas in PACL scam.
- Raids began at 5 a.m. across 19 locations.
- Investigation focuses on money laundering linked to Rs 2,850 crore.
- PACL scam has impacted over 5.85 crore investors nationwide.
- Legal actions are ongoing across multiple states.
Jaipur, April 15 (NationPress) The Enforcement Directorate (ED) initiated raids on Tuesday at numerous sites associated with former Rajasthan Minister and prominent Congress figure Pratap Singh Khachariyawas concerning the staggering Rs 48,100 crore PACL scam.
The operation commenced at approximately 5 a.m. at 19 locations, including Khachariyawas's residence in Jaipur and various properties throughout the state.
The Delhi team of the ED is leading the raids, with local units from Jaipur expected to join and provide support shortly. As per sources from the ED, these actions are related to suspected money laundering and property investments linked to Rs 2,850 crore, allegedly transferred under the names of Pratap Singh and his family.
A considerable amount of the funds is believed to have been rerouted into real estate and other assets.
The PACL scam stands as one of India’s largest financial frauds, wherein over 5.85 crore investors nationwide were deceived under the pretense of real estate investments. In Rajasthan alone, around 28 lakh individuals invested approximately Rs 2,850 crore over 17 years. The scam was uncovered following an inquiry by SEBI, which classified PACL's investment plans as illegal and mandated the company to cease operations on August 22, 2014. Consequently, investors' funds became inaccessible. In February 2016, the Supreme Court instituted a committee led by former Chief Justice R.M. Lodha to recover funds through the auction of PACL’s assets and to refund the impacted investors with accrued interest.
According to SEBI assessments, PACL possesses assets valued at Rs 1.86 lakh crore, which is four times the amount collected from investors.
Sources indicate that Khachariyawas may be involved in transactions amounting to roughly Rs 30 crore related to the scam. These allegations are currently under scrutiny, and ED officials assert that a more comprehensive understanding of the extent of involvement and potential recoveries will only be available once the raids conclude.
The PACL case has sparked legal actions across several states, including Rajasthan, Bihar, Maharashtra, Madhya Pradesh, Assam, Karnataka, Andhra Pradesh, Punjab, and Chhattisgarh. The first FIR was lodged in Jaipur after initial discrepancies were discovered.
The ED’s current initiative marks a significant advancement in the ongoing probe into this nationwide scam, aiming to trace and recover misappropriated investor funds while holding accountable those allegedly involved in laundering illicit proceeds, officials stated.
Responding to the raid, Khachariyawas remarked, "I did not receive any notice from the ED prior to this, only this morning as they arrived... The notice did not provide any reason for the raid." He expressed his willingness to cooperate with the ED team.
Meanwhile, a large gathering of party supporters was seen outside his residence, chanting slogans. Khachariyawas himself emerged to discourage leaders from raising slogans.
Khachariyawas served as a minister during the Gehlot administration in his last term in Rajasthan. A legal team has arrived at his location to assist him.
