ED Attaches ₹22.70 Cr in Dahod Fake Govt Offices Scam

The Enforcement Directorate (ED) announced on Monday that it has provisionally attached movable and immovable properties valued at Rs 22.70 crore in connection with the alleged Dahod fake government offices scam.

These attached assets include seven parcels of land, investments in mutual funds, and balances held in various bank accounts. The ED initiated its investigation based on a First Information Report (FIR) filed by the Dahod Town ‘A’ Division Police Station in Gujarat.

The Core Fraud Uncovered

The case centers on the fraudulent establishment of six fictitious government offices belonging to the Irrigation and Water Resources Department within the Dahod district of Gujarat. Individuals involved in the scam allegedly posed as government officials.

They fabricated official seals and signatures, prepared counterfeit documents, and illicitly secured government grants. The ED’s Ahmedabad zonal office carried out these attachments under the Prevention of Money Laundering Act (PMLA), 2002, targeting properties belonging to Abubakar Jakirali Saiyad, his family members, and associates.

Tracing Illicit Financial Flows

The ED’s investigation further revealed that the accused conspired to obtain approval for 121 fake projects, thereby fraudulently receiving government funds. These illegally obtained funds were then channeled through an intricate web of bank accounts.

The fraudulent money was initially deposited into nine bank accounts opened under the names of the fake government offices. From these accounts, the funds were transferred through 18 intermediary accounts before being distributed to 118 additional accounts linked to individuals and entities associated with the accused.

Public Advisory on Account Security

In light of this scam, the ED issued a public advisory, urging citizens not to share their bank account details, ATM cards, cheque books, internet banking credentials, One-Time Passwords (OTPs), or Know Your Customer (KYC) documents in exchange for small payments or financial benefits.

The agency warned that fraudsters frequently use such accounts as “mule accounts” to route and layer proceeds from cyber frauds and financial scams. It emphasized that even if an account holder is not directly involved in the fraud, allowing one’s account to be used by others can lead to legal repercussions.

Citizens are advised to remain vigilant and promptly report any suspicious requests concerning their bank accounts or banking credentials.