Visakhapatnam/Bhubaneswar: Enforcement Directorate (ED) officials on Wednesday conducted simultaneous searches at premises linked to former Andhra Pradesh MLA Malla Vijay Prasad, who was arrested by Odisha Police five years ago in connection with an alleged chit fund fraud case.
According to information, ED sleuths raided residences and offices of Prasad, who is YSR Congress Party (YSRCP) Visakhapatnam West constituency coordinator and Welfare Group of Companies Chairman.
The raids were reportedly carried out by the Bhubaneswar zonal office of the ED as part of its ongoing investigation into suspected financial irregularities and money laundering linked to chit fund operations.
According to sources, the searches are linked to allegations of large-scale financial irregularities involving the collection of public deposits and the alleged diversion of funds during Vijay Prasad’s tenure as Chairman of the Welfare Group of Companies.
It is suspected that the case involves alleged chit fund-related irregularities worth nearly Rs 3,000 crore. As part of the investigation, officials examined bank accounts, laptops, digital devices, financial records, and other documents to gather evidence.
Prasad was elected as an MLA in 2009 and later contested the 2019 Andhra Pradesh Assembly elections from the Visakhapatnam West constituency as a YSRCP candidate. In 2021, he was appointed Chairman of the Andhra Pradesh Education Welfare and Infrastructure Development Corporation. He currently serves as the YSRCP coordinator for the Visakhapatnam West constituency.
The action comes years after the Economic Offences Wing (EOW) of the Odisha Crime Branch arrested Vijay Prasad in 2021 in connection with the alleged chit fund scam. Following his arrest, he was later granted conditional bail by the Odisha High Court.
While the ED is yet to issue an official statement detailing the outcome of the searches, the agency is believed to be examining financial transactions, property records and other documents to trace the alleged proceeds of crime and ascertain the money trail.
According to reports, Prasad-owned Welfare Buildings and Estates Pvt Ltd. has been accused of duping thousands of depositors from Odisha, Andhra Pradesh and Chhattisgarh to a tune of Rs 1,200 crore. A case was booked against him by the Odisha Police in 2019.
Earlier in 2016, the CBI had searched his office and residential premises in connection with alleged chit fund scams to the tune of hundreds of crores.
The latest searches form part of the ED’s continuing efforts to investigate alleged money laundering arising from chit fund-related offences registered under the Prevention of Money Laundering Act (PMLA). The agency is expected to analyse the seized documents and electronic evidence to determine the extent of the alleged financial irregularities.
