ED temporarily seized assets worth Rs 3.87 crore in the Santosh Construction case in Jharkhand

Traders Union
All News
Financial News
ED seized Santosh Construction assets

Highlights

The Enforcement Directorate has temporarily seized 11 immovable properties worth approximately Rs 3.87 crore belonging to M/s Santosh Construction and its associates in a money laundering investigation.
The case is linked to two FIRs and an NIA investigation, one based on the Maoist attack of 22.11.2019 and the other on alleged extortion of Rs 5 lakh.
The agency estimated proceeds of crime at about Rs 7.16 crore, including Rs 2.69 crore in cash seized and the rest invested or used to purchase properties.

This article was translated from the original. Read the original version by our correspondent here.

Seizure Action and Basis of Investigation

According to the Enforcement Directorate, Enforcement Directorate's Ranchi Zonal Office has temporarily seized immovable assets worth approximately Rs 3.87 crore under the Prevention of Money Laundering Act, 2002. This action is part of an ongoing money laundering investigation against M/s Santosh Construction and its associates, including Santosh Kumar Singh, Mrityunjay Kumar @ Sonu Singh, Manish Kumar, Baijnath Ganjhu, Rajesh Kumar Ganjhu, and Ravindra Ganjhu.

The investigation began based on two FIRs registered at Chandwa police station in Latehar district, Jharkhand, which were later re-registered and taken up for investigation by the National Investigation Agency (NIA). One case relates to the Maoist attack at Lukuia Mod on NH-75 on 22.11.2019, in which four Jharkhand police personnel were martyred and weapons and ammunition were looted.

The second case involves the seizure of Rs 5 lakh in cash, which investigating agencies consider alleged extortion or levy payment. It is alleged that Mrityunjay Kumar @ Sonu Singh, a partner of M/s Santosh Construction, gave this amount to Ravindra Ganjhu, the regional commander of the banned Naxalite organization CPI (Maoist) in Latehar.

Alleged Sources of Income and Regional Impact

The agency has estimated the total proceeds of crime generated from scheduled offenses in this case at approximately Rs 7.16 crore. Of this, Rs 2.69 crore in cash was seized by the NIA during searches, while the remaining Rs 4.46 crore was reportedly invested as capital in the firm during FY 2017-18 and 2018-19.

The investigation also revealed that the allegedly layered funds were integrated into the formal economy by purchasing 11 immovable properties in Mouza Chandwa and Mouza Kamta in Latehar district, Jharkhand. The ED states that these properties were purchased in the names of M/s Santosh Construction, Santosh Kumar Singh, Mrityunjay Kumar @ Sonu Singh, and Manish Kumar through sale deeds showing undervalued amounts and a combination of off-the-books cash payments to avoid banking scrutiny.

On this basis, the agency has temporarily seized these 11 immovable properties, treating them as proceeds of crime or equivalent assets. Further investigation is ongoing, which may impact monitoring of money flows in the construction sector, local contract activities, and security-sensitive areas.

In our previous report, we covered the latest seizure of assets worth Rs 1,021 crore by the Enforcement Directorate under PMLA in the Reliance Home Finance (RHFL) and Reliance Commercial Finance (RCFL) case. That article included the basis of the investigation, allegations of public funds being allegedly diverted through shell/group companies, the growing tally of total seized assets in group-related cases, and ongoing action under FEMA.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.