ED conducts raids in Kolkata, Burdwan, Habra in 'PDS scam'-linked money laundering case

KOLKATA: The Enforcement Directorate (ED) on Saturday carried out searches at multiple locations in poll-bound West Bengal as part of its money laundering probe into an alleged Public Distribution System (PDS) scam, officials said.Searches were underway at around nine premises of suppliers and exporters in Kolkata, Burdwan, and Habra, including those linked to Niranjan Chandra Saha, they added.The action is being conducted under the provisions of the Prevention of Money Laundering Act.The central agency had also carried out raids in connection with the case earlier. The state is set to vote in the second phase of Assembly elections on April 29, following the first phase held on April 23.The money laundering case originates from an October 2020 FIR registered by Basirhat police, based on a complaint filed by a deputy commissioner of customs at the land customs station in Ghojadanga. The complaint alleged large-scale diversion of Public Distribution System (PDS) wheat meant for welfare schemes.According to the Enforcement Directorate (ED), the wheat was procured at low prices through unauthorised channels in collusion with suppliers, licensed distributors, dealers, and middlemen. Large quantities were then illegally diverted from the supply chain and stockpiled at multiple locations.To conceal its origin, the accused allegedly removed or reversed original gunny bags bearing markings of the Food Corporation of India (FCI) and the state government, refilling them to hide identifying features. The repackaged wheat was then passed off as legitimate stock for sale in the open market or for export.The ED has arrested former West Bengal food minister Jyoti Priya Mallick and several others in connection with the case.(With agency inputs)