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ED arrests two people in money-laundering probe against Sahara Group — Details here
India's financial intelligence agency, the Enforcement Directorate (ED), arrested two people who allegedly played a 'key role' in siphoning money, disposing of properties, and assisting the promoters of the Sahara Group in the money laundering case, reported the news agency PTI on Sunday, 13 July 2025.
The news report highlighted that the two individuals taken into custody have been identified as Vailaparampil Abraham and Jitendra Prasad Verma. One of the arrested served as an executive director at the Sahara Group Chairman's core management team, while another was a long-time associate of the group cum property broker.
The two arrested were presented before a local Kolkata court on Saturday, 12 July 2025, and the judicial body sent them back into custody till Monday, 14 July 2025, according to the agency report, citing the ED statement.
The ED alleged that Vailaparampil Abraham played a 'key role' in coordinating and facilitating the sale of Sahara Group properties, many of which involved "substantial unaccounted" cash components that were allegedly siphoned off, according to the agency report citing the ED statement.
The investigation agency's statement also claimed that Jitendra Prasad Verma was 'actively involved' in executing several of these property transactions and knowingly assisted in routing the large cash proceeds which were generated from these sale transactions. This resulted in a contribution to the concealment and dissipation of the crime.
ED reportedly encountered 'incriminating' evidence during its searches, which suggested that the Sahara Group's properties were being disposed of one by one in a 'clandestine' (secretly and often illegally) manner.
The promoters of the Sahara Group were found to be involved in such malpractices while remaining outside India, reported the news agency citing ED.
The Enforcement Directorate (ED) alleged that the Sahara Group was running a 'Ponzi' scheme through various entities.
HICCSL, Sahara Credit Cooperative Society Limited (SCCSL), Saharayn Universal Multipurpose Cooperative Society (SUMCS), Stars Multipurpose Cooperative Society Limited (SMCSL), Sahara India Commercial Corporation Ltd (SICCL), Sahara India Real Estate Corporation Ltd (SIRECL), Sahara Housing Investment Corporation Ltd (SHICL) and other group entities were involved in the case, according to the agency report.
More than 500 FIRS have been filed by different state police departments, such as the Odisha, Bihar, and Rajasthan police, in the money-laundering case against the Sahara Group. The ED is analysing all the complaints filed against Sahara Group entities and related persons before filing the case under India's Prevention of Money Laundering Act (PMLA).
'These funds were managed in an unregulated manner without depositor oversight and maturity proceeds were not repaid instead reinvested under coercion or misrepresentation, and books were manipulated to camouflage such non-repayments,' said ED in its statement, cited the news agency.
The financial agency also alleged that despite the financial incapacity, the group continued to collect fresh deposits, part of which were siphoned off for unnamed assets and personal expenses. 'Assets of the group were also sold for partial cash payments, further denying rightful claims of depositors,' the ED said, according to the report.
Earlier this year, ED attached 707 acres of land worth ₹ 1,460 crore in the Aamby Valley in Maharashtra and 1,023 acres of land worth ₹ 1,538 crore in Sahara Prime City Ltd to the investigations, as per the agency report.
