The Enforcement Directorate’s provisional attachment of ₹127.33 crore worth of shares in two Panchkula hospitals – Alchemist Hospital and Ojas Hospital – marks a significant escalation in the sprawling money-laundering case tied to former Trinamool MP Kanwar Deep Singh’s Alchemist Group. According to The Hindu , the proceeds are held by his son, Karan Deep Singh, via Sorus Agritech Pvt Ltd, which owns roughly 41% and 37% of the respective hospitals in question.
A Ponzi Scheme Smokescreen
The ED’s action is rooted in FIRs filed by Kolkata Police, the CBI, and the Lucknow ACB, alleging that the Alchemist Group orchestrated a massive ₹1,848‑1,900 crore collective investment scheme. Investors were lured with promises of lucrative real-estate returns – including flats, villas, and plots – but were instead defrauded and their money siphoned off.
Investigators contend that these proceeds underwent elaborate layering through group entities before being channelled into shares and construction of the two hospitals. This tactic was apparently designed to disguise the illicit origin of the funds, creating an illusion of legitimate investment.
Political Fallout and Broader Context
The lead figure, Kanwar Deep Singh, served two terms in the Rajya Sabha for the Trinamool Congress until 2020 and was arrested by the ED in January 2021. ED investigations earlier surpassed ₹238 crore in asset attachments linked to him—indicating a sweeping money-laundering trajectory.
This new ₹127 crore share attachment deepens the probe, bringing much-needed public scrutiny to the methods by which political-financial networks may exploit real estate and health infrastructure assets to launder illicit funds.
Why This Matters
This case reiterates that high-value fraud and embezzlement are not victims of leniency or political patronage. Ongoing ED actions help reinforce that senior leaders and their families are equally accountable.
Collective Investment Schemes (CIS) promise quick returns with minimal oversight. This scandal exposes systemic governance failures and the urgent need for regulatory reforms to curb CIS misuse.
There’s a pressing need to fortify real estate and healthcare sectors, common laundering conduits with mandatory audit trails, transaction caps, and KYC provisions.
When hospitals are co-opted as laundered assets, community trust and healthcare delivery integrity suffer. Ensuring transparency in funding sources and governance in vital services becomes all the more urgent.
What Needs to Happen Next
Courts must prioritize these attached assets, finalise confiscations, and facilitate speedy restitution to fraud victims.
Healthcare and real-estate developers must adopt AML (Anti-Money Laundering) safeguards, cross-checking funding sources rigorously.
SEBI and other regulators must prosecute CIS abuses aggressively, preventing similar frauds.
Legitimate whistleblowers identifying fraud should receive safe harbor and incentives to encourage future disclosures.
Transparent utilisation of recovered funds – perhaps through compensatory or development trust schemes – will boost social credibility.
Key Takeaways
ED’s attachment of ₹127 crore in hospital shares underscores the scale and reach of the crime. Refunding defrauded investors and securing justice will test the strengths of India’s legal and regulatory framework. Public vigilance, regulation, and political will are essential to preventing the recurrence of such high-value frauds.
Photo Credit: The Hindu
