ED raids ex-min Khachariyawas in48k-cr PACL ponzi scheme probe

Jaipur: The Enforcement Directorate (ED) Tuesday conducted raids at the residence of former cabinet minister and Congress leader Pratap Singh Khachariyawas as part of an ongoing investigation into the alleged Rs 48,000 crore ponzi scheme linked to Pearl Agro Corporation Ltd (PACL).

The raids follow a money laundering probe by the Central Bureau of Investigation (CBI) which filed an FIR against PACL and its promoters, including late Nirmal Singh Bhangoo, in 2015. Searches were conducted at over 15 locations across various states, including Haryana, Punjab and Delhi.

In Jaipur, Khachariyawas' supporters gathered at his home shouting slogans against the Union govt and the ED when the raid began in the city. Teams of the Central Reserve Police Force (CRPF) had to be deployed to maintain order.

According to ED sources, PACL allegedly deceived investors through fraudulent real estate investment schemes and failed to return huge sums of money. An ED officer, who requested anonymity, said, "We are investigating the proceeds of the crime that were diverted to various people. The outcome of the searches can't be shared now."

Khachariyawas, a prominent Congress leader who previously served as the cabinet minister for transport, food and civil supplies under former chief minister Ashok Gehlot, claimed the ED's actions were politically motivated. Addressing reporters outside his home, he said, "I have done nothing wrong and I am not afraid of the ED. I have been raising various issues and have always been vocal, which I believe is disliked by the BJP."

He hinted that the BJP could also face a similar scrutiny when the political tides shift. "Imagine what will happen to the BJP when Rahul Gandhi comes to power," Khachariyawas remarked, refuting the allegations. But he said he was committed to cooperating with govt officers.

Former CM Gehlot condemned the raids as a targeted effort against a vocal opponent of the BJP govt. Leader of Opposition Tikaram Jully labelled the ED's actions as "political revenge", recalling similar attempts to intimidate Khachariyawas in the past. Khachariyawas is the nephew of BJP stalwart, the late Bhairon Singh Shekhawat.

He was previously questioned by the ED in Aug 2020 when he supported Gehlot during the rebellion by the then deputy CM Sachin Pilot. Khachariyawas, who was interrogated for close to seven hours at the ED office, did not give any details of the case for which he was summoned.

Box: The Laundering Case At A Glance

*Case involves alleged deposits of Rs 45,000 crore from about 5.5 crore investors across the country

*Investors were asked to invest in real estate and promised huge returns

*Many were duped as they neither got any land nor any returns on investment

*ED filed charges against 11 entities, including PACL and related companies

*It accused PACL directors of ‘siphoning off' huge amounts and investing the same in various entities for personal gain

*ED has already attached immovable properties worth Rs 462 crore in 2018 and movable and immovable properties worth Rs 244 crore across India in 2022 in the case, so far