New Delhi, Jan 12, 2026: The Enforcement Directorate (ED) has arrested a man for allegedly threatening its officialsin connection with a high-profile investment fraud case in Hyderabad involving over ₹5,900 crore. The accused, identified as Kalyan Banerjee, was taken into custody on January 10 following a raid at his premises in Secunderabad. He was produced before a special court under the Prevention of Money Laundering Act (PMLA) in Nampally on Sunday and remanded to ED custody until January 23.

Background of the Fraud Case

The case pertains to an ongoing ED investigation into Nowhera Shaik and her associates, who are alleged to have collected more than ₹5,978 crore from the public with promises of annual returns exceeding 36 percent. According to the ED, the accused failed to return even the principal amounts to investors, resulting in substantial financial losses for the public.

In the course of the investigation, the ED attached assets worth ₹428 crore linked to the case. With the Supreme Court’s approval, the agency planned to auction these properties to recover funds and restitute the victims.

Banerjee’s Role in the Case

The ED alleges that Shaik hired Banerjee on a remuneration and commission basis to influence officials and obstruct the auction process. Banerjee, described by the agency as an “imposter,” reportedly threatened ED officers and misrepresented himself as being connected to high-ranking bureaucrats and politicians.

According to the ED, Banerjee messaged and called officers, attempting to manipulate the auction process. When the officers refused to bend the legal procedures, he escalated to threatening and pressuring them to stall the proceedings.

Banerjee was found to be impersonating a consultant for various government departments, claiming proximity to senior bureaucrats and political figures. Evidence recovered from his mobile phones included incriminating WhatsApp messages exchanged with Shaik and her associates.

During interrogation, Banerjee allegedly admitted to impersonation and stated that he was acting on the directions of Nowhera Shaik and her associates to influence the officials handling the auction.

Enforcement and Legal Proceedings

The arrest highlights the ED’s efforts to ensure that the auction process under PMLA proceeds without obstruction, as part of its broader initiative to recover funds for victims of the Hyderabad-based investment scam. The ED’s powers under the Prevention of Money Laundering Act allow it to attach properties of accused individuals and oversee the restitution of funds to affected parties.

The agency emphasized that threatening or attempting to influence its officers constitutes a serious offense under Indian law, particularly given the high-value nature of the fraud case. Banerjee’s arrest sends a signal that attempts to interfere with investigations or auctions of attached properties will not be tolerated.

Implications of the Arrest

The arrest of Banerjee is expected to help the ED proceed unhindered with the auction of attached assets and expedite the restitution process for victims. The case also sheds light on the tactics employed by some accused parties to undermine legal procedures, including impersonation and leveraging supposed connections with officials.

The ED continues to monitor communications and financial transactions of Shaik and her associates, seeking to ensure that all steps under PMLA are implemented for recovering funds and holding culpable individuals accountable.

This development forms part of a wider crackdown by Indian authorities on large-scale financial frauds targeting retail investors, highlighting the agency’s role in enforcing anti-money laundering laws and ensuring compliance with court-mandated restitution processes.

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