ED makes third arrest in connection with land grabbing and money laundering case in Kolkata

The Enforcement Directorate (ED) on Monday arrested Biswajit Poddar, alias Sona Pappu, in connection with an alleged money-laundering, land-grabbing and extortion racket after questioning him for nearly nine hours at its Salt Lake office.

Pappu, who had remained untraceable for several months despite repeated summonses, appeared at the ED office at the CGO Complex accompanied by his wife. Investigators later took him into custody, alleging non-cooperation with the probe.

Advertisement

The arrest marks a major development in an investigation that has widened over the past several months to include businessmen, property developers and even senior police officials.

According to ED officials, the probe centres on what the agency describes as a large-scale housing and land-grabbing scam operating across Kolkata and its eastern fringes. Investigators allege that the accused illegally occupied land, carried out unauthorised construction and ran systematic extortion operations under the guise of property development.

Officials claim forged ownership documents were allegedly created to establish a fraudulent chain of title over several land parcels. These records were then purportedly used to commercially exploit the land and attract investments worth crores of rupees from members of the public.

The agency suspects a portion of the proceeds may have been diverted overseas and that funds were routed to influential individuals.

Pappu’s name had earlier surfaced in connection with violence in the Rabindra Sarovar police station area in February last year. Local residents alleged that his associates were involved in clashes and vandalism in the area. While police arrested several individuals following the unrest, they were unable to trace Pappu, who was believed to be in hiding.

Despite remaining absconding, Pappu appeared live on Facebook on multiple occasions, denying any involvement in the violence.

The ED intensified its investigation on April 1 when coordinated raids were conducted at six locations across Kolkata, including Pappu’s Ballygunge residence and offices linked to construction companies. Investigators also searched the home of Rahul Das, described as one of Pappu’s close associates.

During one of the searches, officials recovered a firearm from Pappu’s residence. According to ED sources, the foreign-made pistol had allegedly been procured through businessman Joy Kamdar.

Further searches were carried out on April 19 at the Fern Road residence of Shantanu Biswas, a deputy commissioner in Kolkata Police’s Special Branch, and at a nearby property where he reportedly owns five flats. Raids were also conducted at the Behala residence of Joy Kamdar, Managing Director of Sun Enterprise.

Kamdar had earlier ignored two summonses issued by the agency in connection with the land-grabbing investigation. He was later arrested, and officials reportedly seized ₹1.2 crore in cash from his premises.

The investigation later expanded to include senior police officer Shantanu Biswas. The ED had summoned him in March in connection with a separate coal scam case and directed him to appear before investigators in New Delhi in early April.

On May 14, Biswas was arrested after appearing at the CGO Complex in Salt Lake in connection with the money-laundering probe. A day earlier, the ED had written to the state’s directorate of security seeking information on his whereabouts and had also issued a lookout circular amid fears that he might flee the country.

Officials said multiple FIRs have been registered against Pappu over the years, including allegations of extortion, intimidation and offences under the Arms Act. These cases eventually formed the basis of the ED’s money-laundering investigation.

In a related development last month, the agency also searched seven premises linked to the Merlin Group as part of the same probe. The searches covered properties associated with promoters Sushil Mohta and his son Saket Mohta, including locations on Prince Anwar Shah Road and in Salt Lake.

Investigators believe the case points to a broader network of alleged land grabbing, financial irregularities and illegal real estate operations in Kolkata.

After remaining out of sight for months, Pappu unexpectedly appeared before ED officials on Monday without receiving a fresh notice. Following day-long questioning, he was formally arrested late in the evening.