New Delhi [India], July 8 : Directorate of Enforcement (ED), Kolkata Zonal Office, has arrested Saiyad Jiyajur Rahaman, Director of M/s LFS Broking Pvt. Ltd., on July 5, under the provisions of Prevention of Money Laundering Act (PMLA), 2002, the agency said.
Earlier, the accused was produced before the Chief Judge, City Sessions Court, Kolkata, on the strength of a production warrant issued by the Court. The accused has been remanded to ED custody till July 14, the ED said.
https://x.com/dir_ed/status/1942527615665070553
According to the ED, Saiyad Jiyajur Rahaman is the mastermind behind fraudulent schemes carried out through M/s LFS Broking Pvt. Ltd., which promised assured returns ranging from 2-3 per cent on investments, which lured a number of investors into entrusting their hard-earned money to the accused persons.
In this matter, searches were earlier conducted on May 22, 2025, at several premises linked to M/s LFS Broking Pvt Ltd and its Directors/associates, resulting in the freezing of various bank accounts, identifying a number of movable and immovable properties, and the arrest of two accused persons, namely Md. Anarul Islam and Dilip Kumar Maity under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, the agency said.
As per the ED, the case pertains to the fraudulent mobilisation of public investments by the accused persons through various companies and firms, based on false promises of high returns at exorbitant rates. The arrested persons operated the illegal business under the guise of M/s LFS Broking Pvt Ltd, a company registered with SEBI for share broking and other investment activities. However, they knowingly floated several other firms bearing names similar to M/s LFS Broking Pvt Ltd. Investors were misled into believing that they were investing in the SEBI-registered company, whereas funds were actually diverted to similarly named firms such as LFS Broking and PMS Services, and others, the ED said.
So far, the total amount mobilised by the accused persons has been identified to be around Rs. 1500 Crore. Further investigation is under progress, the agency said.