The Enforcement Directorate (ED) of India launched early morning search operations at multiple locations across West Bengal on Thursday, July 9, as part of an ongoing money laundering investigation into alleged fraud involving cryptocurrency investments, chit fund companies, and bogus stock market training schemes.
The raids, first reported by the news agency the Daily Jagran, were conducted with the support of central security forces deployed at each location. The central agency’s teams fanned out across three districts, searching the residence of Dilip Mallick, a former employee of Eastern Coalfields Limited (ECL), in the Andal area of West Burdwan district, the home of Sourav Chatterjee in Howrah district, and premises linked to businessman Subhra Kanti Nag, also known as Babai Nag, in Nadia district.
Father-Son Duo Accused of Crypto Investment Fraud
At the center of the crypto angle of the probe is Dilip Mallick and his son Diganta Mallick, residents of the Sripalli Subhashnagar Riksadangal area of Andal in Durgapur. According to investigation sources, the father-son duo allegedly cheated investors out of crores of rupees through cryptocurrency-related investment schemes.
Investigators claim the two opened an office at Fairlie Place in Kolkata, where people were persuaded to put money into crypto with promises of attractive returns. The scheme was reportedly promoted at scale through aggressive social media campaigns, with Diganta Mallick allegedly leading the online push to draw in investors.
Sources within the agency said Diganta had been arrested earlier in connection with the case and was later released on bail. The ED reportedly reopened active pursuit of the matter after recently detecting evidence of large-scale financial transactions flowing through his bank accounts, which triggered Thursday morning’s search at the family’s Andal residence.
Suspected Money Trail to Dubai
The investigation has also taken on an international dimension. According to agency sources, the accused are believed to have dealings with a businessman based in Dubai, and officials suspect that a portion of the money collected from investors may have been laundered abroad through hawala-style or layered financial channels.
The ED is now examining documents and digital records related to financial transactions and investor payments to establish how the funds moved and whether they crossed borders.
Chit Fund Links in Howrah
In a parallel search, ED officials raided the house of Sourav Chatterjee, a resident of Kuchil Sarkar Lane under the Batra police station area in Howrah. Chatterjee is alleged to have links with several chit fund companies and businesses connected to stock market trading. Investigators are examining his role and possible financial connections within the wider fraud network.
‘Stock Gurukul’ Founder Under the Scanner
The third leg of the operation targeted businessman Subhra Kanti Nag alias Babai Nag in Kalinarayanpur, Nadia district. Nag is accused of running a fake chit fund operation disguised as a stock market education and investment venture through an entity called Stock Gurukul.
The company allegedly collected money from investors while presenting itself as a legitimate stock market training and investment platform. The ED is probing allegations of fraud and financial embezzlement against the firm. According to preliminary information, Nag and his family members were not present at their residence when the search team arrived.
Part of a Wider ED Crackdown in Bengal
Thursday’s operation comes amid a broader enforcement push by the agency in West Bengal. Just two days earlier, on July 7, the ED had searched five locations in and around Kolkata under the Prevention of Money Laundering Act (PMLA) in a suspected Rs 150 crore fund routing case involving bank accounts allegedly linked to the Trinamool Congress (TMC), as per a report by ANI. Following those raids, the agency froze around Rs 440 crore held across multiple accounts over suspicious transactions, as per a report by India TV News.
West Bengal has a long history of chit fund scandals, and the addition of crypto investment schemes to the mix marks a shift in how such Ponzi-style operations are being packaged for retail investors.
The blending of cryptocurrency promises, social media marketing, and traditional chit fund structures has increasingly drawn the attention of central agencies, which view digital assets as a fast-growing channel for moving illicit proceeds offshore.
The ED has not yet issued an official statement on Thursday’s searches. Further details, including any seizures of cash, documents, or digital devices, are expected once the operations conclude.
This is a developing story and will be updated as more information becomes available.
Disclaimer: This report relies on local coverage and will be updated when official statements are released. All allegations detailed here are from investigative authorities and have not been adjudicated in court. All named individuals and entities are presumed innocent until proven guilty.
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