Who is Kalyan Banerjee? Why has ED arrested him in Nowhera Shaik case

Hyderabad: The sleuths of the Enforcement Directorate have arrested a person identified as Kalyan Banerjee for impersonating a consultant and claiming to be connected to the ED.

Kalyan Banerjee is an imposter who was trying to interfere in the working of the ED in regard to the Nowhera Shaik case under the Prevention of Money Laundering Act (PMLA), the ED said.

What is the Nowhera Shaik case about?

Nowhera Shaik and others had collected investment of more than Rs 5,978 crore from gullible public with a promise of higher returns of more than 36 per cent a year. However, they failed to return even the principal amount, thereby duping the gullible investors.

The ED investigation revealed that Nowhera Shaik had utilised part of the Proceeds of Crime (PoC) towards the purchase of various immovable properties in her name, her companies’ name and in the names of her relatives.

During the investigation, properties amounting to approx. Rs 428 crore have been attached by the ED. A Prosecution Complaint as well as a Supplementary Prosecution Complaint have been filed before the Special PMLA Court, Hyderabad.

Nowhera Shaik’s attempts to stall the auction process

As part of the PMLA investigation in the case and ongoing proceedings in the Supreme Court, ED moved an application before the Supreme Court proposing the auction of confirmed attached properties so that proceeds of the same could be restored to the victims of the fraud.

After obtaining due approval from the apex court and in compliance with orders, several attached properties in the case have been put up for auction through MSTC.

However, Nowhera Shaik has repeatedly tried to stall the auction process before the Supreme Court as well as the Telangana High Court.

To stall the last auction, which was conducted on January 5, she filed a petition before the Telangana High Court, alleging malafide in the auction process.

The petition was dismissed by the court, and an exemplary cost of Rs 5 crore was imposed on Nowhera Shaik. The court ordered that the said cost be deposited by Nowhera Shaik in the Prime Minister’s Relief Fund.

Kalyan Banerjee was hired by Nowhera Shaik to manipulate auction process

Having failed to legally protect properties acquired by her out of PoC, Nowhera Shaik hired the services of an imposter named Kalyan Banerjee on a monthly remuneration as well as a commission basis.

Kalyan Banerjee started messaging and calling the ED officers. He falsely projected himself as close to several high-ranking bureaucrats and politicians.

He tried to entice the officers to manipulate the auction process, but when he was categorically told to follow due process of law, he started threatening the officers and put pressure on them to stall the auction process.

Intelligence was developed, and it was found that he was an imposter who was impersonating a consultant to various departments and was close to senior bureaucrats and politicians. He was found to have furnished an incomplete address in his mobile SIM card KYC documents.

He was finally traced based on intelligence gathered from several sources, and a search action under section 17 of the PMLA was conducted at his premises in Secunderabad on January 10.

Evidence linking Kalyan to Nowhera Shaik

His mobile phones revealed incriminating WhatsApp chats with Nowhera Shaik and her associates. His chats also revealed that he was trying to manipulate the investigation proceedings and the judicial process in unethical ways.

Attempts to alienate and sell properties acquired out of PoC, as well as earn huge commissions out of illegal deals, were revealed. In his statements recorded under the provisions of PMLA, he admitted to impersonation to put pressure on officers.

He also admitted that he was acting on the directions of Nowhera Shaik and her associates. It was revealed that he was knowingly assisting Nowhera Shaik and others in the various processes and activities connected with the proceeds of crime.

Kalyan Banerjee was produced before the MSJ, Nampally Special PMLA Court on January 11, and the court has remanded him to judicial custody till January 23.

ED cautions against interference

ED has categorically demonstrated that any attempt by unscrupulous individuals to interfere in its investigation proceedings shall be dealt with firmly, and appropriate action under the law shall be taken against them.