ED has conducted searches at 8 locations in Sikkim, Kolkata, Delhi and Mumbai in the Sikkim MCX Fraud case. A total amount of Rs 4.65 Crore was frozen from the bank accounts of brokers that corresponded to the undue gain availed by such brokers by illegally availing Stamp Duty Exemption
Directorate of Enforcement
Department of Revenue
Ministry of Finance, Government of India
Press Release | 13.07.2022
Directorate of Enforcement (ED) has conducted searches at 8 locations in Sikkim, Kolkata, Delhi and Mumbai in Sikkim MCX Fraud case. The locations include various premises of LLPs in Sikkim, which were controlled by brokers trading in MCX and NSE in Kolkata and Delhi. A total amount of Rs 4.65 Crore was frozen from the bank accounts of brokers that corresponded to the undue gain availed by such brokers by illegally availing Stamp Duty Exemption. Further, premises of various stockbrokers in Delhi and Mumbai, where many fake Sikkim based traders were registered were also searched. Incriminating evidence relating to such traders was recovered.
ED initiated money laundering investigation on the basis of FIR dated 17.05.2022 registered by the Sikkim Vigilance Police Station against unknown persons/companies based on a complaint filed by one a resident of Gangtok, Sikkim. It has been alleged in the said FIR that the disproportionate data in MCX trading from Sikkim is highly doubtful and some Limited Liability Partners (LLP) company and private individual/traders from other states of India are doing high frequency MCX trading either using identity of Sikkim residents or using co-location of Sikkim illegitimately for taking undue advantage of the Income Tax and Stamp Duty exemption given to the people of Sikkim.
Further investigation is in progress.
