ED seizes Rs 7 crore cash after raids on Kolkata-based gaming app ‘E Nuggets’

Directorate of Enforcement (ED), on Saturday, seized over Rs 7 crore cash from the promoters of a Kolkata-based mobile gaming app named ‘E Nuggets’ which was used to scam people financially.

The law enforcement agency has been carrying out search operations as part of a money-laundering investigation under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 (on 10.09.2022) at six premises in Kolkata, it said in a statement.

“During the search operation, it is noticed that the said entities were using dummy accounts. So far, huge cash (More than Rs 7 Crore) has been found at the premises and counting of the amount is still under progress,” it said.

“So far, more than Rs 7 crore in cash has been found at the premises and the counting is still in progress,” the law enforcement agency added.

ED also revealed that the searches were conducted at half-a-dozen locations of the gaming app company and its promoter identified as Amir Khan and others. The federal agency also shared a picture showing bundles of seized Rs 500 currency notes along with a few in the denomination of Rs 2,000 and Rs 200 stacked together on a bed.

“One person namely Amir Khan, S/o Nesar Ahmed Khan, launched a mobile gaming application namely E-Nuggets, which was designed for the purpose of defrauding public. During the initial period, the users were rewarded with commission and the balance in the wallet could be withdrawn hassle-free,” said ED in its report.  

“This provided initial confidence among users, and they started investing bigger amounts for greater percentage of commission and a greater number of purchase orders. Further, after collecting handsome amount from the public, all of a sudden, the withdrawal from the said App, was stopped, at one or the other pretext viz. system upgradation, investigation by LEAs etc. Thereafter, all data including profile information was wiped off from the said App servers and only then the users understood the ploy,” it added.

The money laundering case stems from an FIR filed by the Kolkata Police against the company and its promoters in February 2021. This FIR was registered at the Park Street Police Station based on a complaint filed by the Federal Bank authorities before a court in Kolkata, the ED said.

Moreover, according to a PTI report, the law enforcement agency is also investigating if this app and its operators had links with other “Chinese controlled” apps that had been issuing loans at exorbitant rates to gullible persons and in many cases, the loan takers ended their lives after they were threatened by these loan operators to pay up.

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