New Delhi (Agency): The Directorate of Enforcement (ED) arrested Prabir Kumar Chanda and Pranab Kumar Das, directors of MPS Greenery Developers Limited, on August 24, 2023. They were arrested under the Prevention of Money Laundering Act, 2002, in connection with fraudulent Collective Investment Schemes. The Hon’ble Special PMLA Court in Kolkata granted ED custody of the arrested directors for seven days until September 1, 2023.
ED initiated its investigation based on multiple FIRs filed by the West Bengal Police and CBI, SCB, Kolkata. The charges involve violations of various sections of IPC,1860 against the company and other associates.
During the period from 1999-2000 to 2013-2014, MPS Greenery Developers Limited raised a staggering Rs. 2682 Crore from investors. They used “fraudulent income schemes” that included issuing Agro, Orchard, and Teak bonds. These activities violated RBI and SEBI norms. The investigation revealed that the directors and other associates diverted Rs. 1786 Crore of public funds to subsidiary and associate companies. These funds were later withdrawn as cash, diverted to third-party entities, and used to acquire properties in the names of the directors and their family members.
In addition to the arrests, ED has previously issued two Provisional Attachment Orders. These orders attach properties with a total value of Rs. 14.59 Crore and filed one Prosecution Complaint.
Further investigation is in progress, aiming to hold all involved parties accountable and to recover the misused funds. This case has drawn public attention and raised concerns about the safety of investments in similar schemes.
