Brokers

ED searches 8 locations, freezes bank accounts of brokers in MCX fraud case

The Enforcement Directorate (ED) on Wednesday conducted searches at eight locations in the Sikkim MCX fraud case and froze bank accounts of several brokers.

Sikkim MCX fraud case

The ED had initiated a money laundering probe on the basis of an FIR registered by the Sikkim Police. (Photo: Representational)

The Directorate of Enforcement (ED) on Wednesday conducted searches at eight locations in Sikkim, Kolkata, Delhi and Mumbai in the Sikkim Multi Commodity Exchange (MCX) fraud case.

The locations include various premises of Limited Liability Partners (LLPs) in Sikkim, that were controlled by brokers trading in MCX and NSE in Kolkata and Delhi. Bank accounts of brokers, who gained by illegally availing stamp duty exemption, were frozen. Rs 4.65 crore was present in these accounts.

Further, premises of various stockbrokers in Delhi and Mumbai, where many fake Sikkim-based traders were registered, were also searched. Incriminating evidence relating to such traders was recovered.

The ED initiated a money laundering investigation on the basis of an FIR registered by the Sikkim Police against unknown persons/companies based on a complaint filed by one resident of Gangtok, Sikkim.

It was alleged that the disproportionate data in MCX trading from Sikkim is highly doubtful and some LLP companies and private individuals/traders from other states of India are doing high frequency MCX trading either using the 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.

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