ED arrests imposter for trying to derail auction of properties attached in ponzi scheme case

The Directorate of Enforcement’s Hyderabad zonal office arrested an imposter, Kalyan Banerjee, for attempting to interfere with an ongoing money laundering investigation and for trying to stall the auction of properties attached in the high-profile ponzi scheme case in which Nowhera Shaik is the prime accused.

Banerjee was arrested on January 10 in connection with a probe under the Prevention of Money Laundering Act, 2002, and was produced before the special PMLA court at Nampally a day later. The court remanded him to judicial custody till January 23.

The ED has been investigating Nowhera Shaik and others on the basis of multiple FIRs registered by police authorities in different States. According to the agency, the accused had collected investments of more than ₹5,978 crore from the public by promising returns exceeding 36% annually, but allegedly failed to return even the principal amounts, thereby cheating thousands of investors.

The ED said its investigation revealed that a portion of the alleged proceeds of crime was used to purchase immovable properties in the names of Nowhera Shaik, her companies and relatives. Properties worth about ₹428 crore have so far been attached, and prosecution complaints, including supplementary complaints, have been filed before the special PMLA court in Hyderabad.

With matters pending before the Supreme Court, the ED had sought permission to auction confirmed attached properties so that the proceeds could be returned to victims. After obtaining approval from the Supreme Court, several properties were put up for auction through MSTC. The agency said Nowhera Shaik repeatedly attempted to stall the auctions by approaching the Supreme Court and the Telangana High Court. Her last petition, filed to halt an auction held on January 5, was dismissed by the High Court, which also imposed an exemplary cost of ₹5 crore, directing that the amount be deposited in the Prime Minister’s Relief Fund.

The ED alleged that after failing to secure legal relief, Nowhera Shaik engaged Banerjee on a monthly payment and commission basis. Banerjee allegedly contacted ED officers through calls and messages, falsely claiming proximity to senior bureaucrats and politicians, and attempted to influence the auction process. When officials insisted on due legal procedure, he allegedly began threatening them and exerting pressure to stall the auctions.

Based on intelligence inputs, the ED said Banerjee was identified as an imposter who had been posing as a consultant to various departments. He was traced to Secunderabad, where a search under Section 17 of the PMLA was conducted at his premises on January 10. His mobile phones allegedly contained incriminating WhatsApp chats with Nowhera Shaik and her associates, indicating attempts to manipulate the investigation and judicial process through unethical means, including plans to alienate properties acquired from alleged proceeds of crime and earn illegal commissions.

In statements recorded under the PMLA, Banerjee admitted to impersonation and to acting on the directions of Nowhera Shaik and her associates. The ED said he knowingly assisted them in activities connected with the alleged proceeds of crime.