The Enforcement Directorate on Wednesday said it has registered a money laundering case in connection with the alleged fraud in the Sikkim Multi Commodity Exchange and raided multiple locations in Sikkim, Kolkata, Mumbai and Delhi.
A total of eight locations including various premises of Limited Liability Partnership (LLP) companies in Sikkim, which were controlled by brokers trading in the MCX and the National Stock Exchange (NSE) in Kolkata and Delhi, were covered.
Premises of various stockbrokers in Delhi and Mumbai, where many “fake” Sikkim-based traders are registered, were also searched, the ED said in a statement.
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An amount of Rs 4.65 crore in the bank accounts of brokers that corresponded to the “undue” gain availed by such brokers by illegally availing stamp duty exemption has been frozen by the agency under sections of the Prevention of Money Laundering Act (PMLA), it said.
The money laundering case stems from a Sikkim Police vigilance unit FIR that was registered on May 17 against unidentified persons and companies on the basis of a complaint filed by a resident of Gangtok.
“It has been alleged in the FIR that the disproportionate data in MCX trading from Sikkim is highly doubtful and some LLP company and private individual/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,” the ED said.