ED searches premises linked to YSR Congress leader in chit fund case

The Enforcement Directorate searched premises linked to YSR Congress leader Malla Vijaya Prasad in Visakhapatnam and Hyderabad as part of its money laundering investigation into an alleged multi-state chit fund scam. The agency is probing allegations involving Welfare Group of Companies

Visakhapatnam: The Enforcement Directorate (ED) on Wednesday conducted searches at the premises linked to YSR Congress Party leader Malla Vijaya Prasad in a chit fund scam case.

The ED officials conducted simultaneous searches at five places in Visakhapatnam and Hyderabad.

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The searches were conducted at the residence, office and other premises of the former MLA and chairman of Welfare Group of Companies.

The raids were reported to be part of the investigation by the Central agency into the allegations of money laundering probe into alleged multi-state chit fund scam.

The Central agency is probing the allegations against Vijaya Prasad and Welfare Group of Companies.

ED officials from Odisha and West Bengal are reported to be participating in the searches. Police and CRPF personnel made tight security arrangements during the searches.

Vijaya Prasad is YSRCP’s coordinator for Visakhapatnam West constituency.

A few cases were filed against him in Odisha, West Bengal, Bihar and Jharkhand in the past.

In 2021, Odisha police arrested him for his alleged involvement in the 2019 chit fund case. He was then serving as the chairman of Andhra Pradesh Education and Welfare Development Corporation.

Odisha Police had registered cases under various sections of the Indian Penal Code, PC and MC Schemes (Banning Act) of 1978 and OPID Act of 2011 in connection with the alleged chit fund fraud.

There were allegations that he was involved in a Rs 1,200 crore chit fund scam in which thousands of depositors from Andhra Pradesh, Odisha, Telangana, Chhattisgarh and other states were allegedly duped.

In 2016, the CBI also registered two cases against him in connection with the chit fund scams. The agency had carried out searches at his office and residential premises.

Vijaya Prasad was elected to the Andhra Pradesh Assembly from Visakhapatnam West constituency in 2009 on a Congress ticket. He joined YSR Congress before the 2019 elections and contested unsuccessfully from the same constituency.