Thursday, Jul 14, 2022 08:00 [IST]
Last Update: Thursday, Jul 14, 2022 02:21 [IST]
GANGTOK,: The Enforcement Directorate (ED) on Wednesday said that it has conducted searches at eight locations in Sikkim, Kolkata, Delhi and Mumbai in connection to the Sikkim MCX fraud case.
“ED has conducted searches at 8 locations in Sikkim, Kolkata, Delhi & Mumbai in Sikkim MCX Fraud case. A total amount of Rs. 4.65 Cr was frozen from the bank accounts of brokers that corresponded to the undue gain availed by such brokers by illegally availing Stamp Duty Exemption,” the ED tweeted in its official social media handle.
Earlier this year in April, a national newspaper had raised concerns on the unprecedented Multi Commodity Exchange (MCX) transactions being done from Sikkim-based traders. The report had highlighted that in February alone, Sikkim-based traders’ share in MCX stood at over $6 billion. The number of traders from the State, based on unique client code, has increased to 2,217 compared to 674 in February 2020, it was reported.
Chief Minister P.S. Golay had stated that the State government had immediately directed the Vigilance Police to investigate the suspicious increase in the numbers and market share of Sikkim-based traders on MCX.
In a July 13 press statement available in the official website of the Enforcement Directorate, the ED said the locations where the search was conducted include the various premises of LLPs in Sikkim, “which were controlled by brokers trade in MCX and NSE in Kolkata and Delhi”. Further, premises of various stockbrokers in Delhi and Mumbai, where many fake Sikkim-based traders were registered were also searched, said the ED.
Incriminating evidence relating to such traders was recovered, said the ED.
As per the release, the ED initiated money laundering investigation on the basis of FIR dated 17.05.2022 registered by Sikkim Vigilance police station against unknown persons/companies based on a complaint filed by a resident of Gangtok.
In the FIR, it had been alleged that disproportionate data in MCX trading from Sikkim is highly doubtful and some Limited Liability Partners (LLP) company and private individuals/traders from other States of India are doing high frequency MCX trading either using identity of Sikkim residents or using co-location of Sikkim illegitimately for taking undue advantage of the Income Tax and Stamp Duty exemption given to the people of Sikkim.
“Further investigation is in progress”, said the ED.