• Sujal Pradhan, NET Correspondent, Sikkim 

The Enforcement Directorate (ED) has conducted raid along 8 locations; over the controversial Sikkim MCX trading.

This move came days, after the Sikkim Vigilance Police Station lodged a First Information Report (FIR) against unknown persons/companies, based on a complaint filed by a resident of Gangtok – Dr. Raju Giri.

It has been alleged in the said FIR that the disproportionate data in MCX trading from Sikkim is highly doubtable and some Limited Liability Partners (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 taking undue advantage of the Income Tax and Stamp Duty exemption given to the people of Sikkim.

As the said FIR has been registered invoking the provisions of Sections 120B, 420, 468 & 471 of Indian Penal Code and Sections 120-B, 420 & 471 of IPC are scheduled offences under the PMLA, a case for the offence of money laundering was registered vide ECIR/GKSZO/14/2022 and taken for investigation under the provisions of the Prevention of Money Laundering Act, 2002.

Therefore, the ED, Gangtok Sub Zonal Unit conducted searches at 8 locations on Tuesday, across Sikkim, Kolkata, Delhi and Mumbai in Sikkim MCX Fraud case.

These locations include various premises of LLPs in Sikkim, that were controlled by brokers trading in MCX and NSE in Kolkata and Delhi. A total amount of Rs 4.65 crores was frozen from the bank accounts of brokers that corresponded to the undue gain availed by such brokers by illegally availing Stamp Duty Exemption.

Premises of various stockbrokers in Delhi and Mumbai, where many fake Sikkim based traders were registered were also raided. Incriminating evidences related to such traders was also recovered.

Further investigation into the matter is underway.

Taking to Twitter, the official handle of ED wrote “ED has conducted searches at 8 locations in Sikkim, Kolkata, Delhi & Mumbai in Sikkim MCX Fraud case. A total amount of Rs. 4.65 Cr was frozen from the bank accounts of brokers that corresponded to the undue gain availed by such brokers by illegally availing Stamp Duty Exemption.”

ED has conducted searches at 8 locations in Sikkim, Kolkata, Delhi & Mumbai in Sikkim MCX Fraud case. A total amount of Rs. 4.65 Cr was frozen from the bank accounts of brokers that corresponded to the undue gain availed by such brokers by illegally availing Stamp Duty Exemption.

— ED (@dir_ed) July 13, 2022