ED arrests two in Bengal for Rs 260 crore fake investment scam targeting 2,600 investors

The Enforcement Directorate (ED) arrested two individuals, Dilip Maiti and Md Anarul Islam, from Hooghly and Birbhum districts of West Bengal in connection with a financial fraud involving LFS Broking Private Limited. The arrests followed extensive raids conducted at five locations linked to the company, which started early Thursday and continued throughout the day. The accused were taken into custody after questioning and were brought to the ED office in Salt Lake on a one-day remand.

Investigations revealed that LFS Broking Private Limited, registered as a share brokerage firm, operated unauthorized investment schemes primarily targeting rural areas in West Bengal. The company collected approximately Rs 260 crore from around 2,600 investors. Officials seized several incriminating documents from the residences and offices of the accused during the raids. Sources said that while Maiti is one of the directors, Islam held a senior official position in the entity.

The case gained prominence following reports of investor suicides linked to the company’s fraudulent activities, including one incident at the firm’s office. The Securities and Exchange Board of India (SEBI) had canceled LFS Broking Private Limited’s registration in June last year and barred its managing director, Ziaur Rahaman, currently in custody, from associating with any registered intermediary for five years. The ED continues to interrogate the accused to gather further details on the scam.