The Enforcement Directorate conducted “search and seizure” operations at multiple locations in the city on Tuesday in connection with its probe into alleged financial irregularities in South Point School and South Point High School.
The raids started around 6.30am. Accompanied by central forces, ED officials went to Nalini Ranjan Avenue in New Alipore, to the home of Sushil Kumar Daga, a trustee of South Point Education Society.
Another ED team went to the Kasba home of another person, a former employee of South Point who passed away only recently.
The ED visits come in the wake of an ongoing investigation into the alleged embezzlement of funds from South Point School and South Point High School and associated money laundering, in which the key accused are Krishna Damani, a former trustee of the Society, and Daga, besides others.
Damani, who was the administrator and treasurer of South Point School and South Point High School, was arrested by Kolkata Police on February 8 this year for allegedly siphoning off money from school funds.
Damani was charged with criminal breach of trust, forgery, falsification of accounts and criminal conspiracy.
“A preliminary investigation revealed that money from the school was being siphoned off through a company that provided logistics like manpower to the school at an apparently inflated rate compared with market prices. This company is owned by relatives of Krishna Damani,” police had said after the arrest.
The complaint was lodged on behalf of the MP Birla Group, of which the South Point Education Society (SPES) is a part.
Damani got bail from the Supreme Court in May.
Sources in the ED, which is probing the money trail in the case, said the irregularities run into over ₹900 crore.
“Money was diverted from the school’s account to private accounts. The cash was laundered through shell companies. Funds for the upcoming campus of the school in Mukundapur are also under the ambit of the probe,” said an ED official.
A spokesperson for the MP Birla Group declined to comment.
