A major fraud case has emerged in Kolkata, where Kasba councillor Sushanta Ghosh allegedly defrauded 950 hawkers of Anandapur and Kasba of Rs 2.5 to Rs 3 crore. Ghosh faces four separate cases of extortion and cheating, with the latest registered on June 15. The Anti-Fraud Section of the detective department arrested him in Pipili near Puri on Monday and produced him at Alipore Court on Thursday.
Modus Operandi of the Scam
According to the Alipore police court public prosecutor, Ghosh led a multi-crore racket targeting street vendors under the guise of a sophisticated chit-fund-style cooperative scheme. The scam was linked to an official footpath beautification and redevelopment drive. Initially, vulnerable hawkers were evicted from their original places of business.
To drain the hawkers' resources without raising immediate alarms, the accused operated a parallel collection system similar to a recurring chit-fund scam. Hawkers were coerced into paying hefty sums through structured periodic installments, effectively forcing them to buy back their own livelihoods under the illusion of securing permanent commercial tenure.
Extortionate Payments and Forged Documents
The police claimed that to secure permission to return, the syndicate forced hawkers to pay substantial “clearance fees” ranging between Rs 50,000 and Rs 70,000 each. Following this, newly constructed tin stalls on the pavement were sold back to the victims at exorbitant prices ranging from Rs 5 lakh to Rs 8 lakh per stall. To legitimize this extortion, the racket prepared and used highly convincing forged government documents to pass themselves off as personnel authorized by competent authorities.
Financial Anomalies and Investigation
Cops claimed that a scrutiny of the syndicate’s operational network has revealed massive financial anomalies. Recent raids, including a house search on June 17, yielded ledger books detailing the systematic collection and internal distribution of the extorted wealth among committee members. Also, scrutiny of the accused’s bank accounts has exposed a flurry of suspicious monetary transactions and substantial cash deposits matching the timeline of the scam, an officer said.
Public prosecutor Sourin Ghosal said the ongoing probe is at a crucial stage. The police emphasized that releasing the accused at this juncture would severely jeopardize the probe, potentially leading to extensive witness intimidation, destruction of the electronic money trail, and collusion with absconding associates.
