The Enforcement Directorate on Thursday conducted searches at several locations in Meghalaya as part of a money laundering probe into the alleged misappropriation of funds in the Garo Hills Autonomous District Council (GHADC), officials said.
These are the first raids by the Shillong-based sub-zonal office of the federal investigation agency after registering a case under the Prevention of Money Laundering Act (PMLA) in the state.
The agency has taken similar action in the state in cases registered in other states.
At least five properties in Tura under West Garo Hills district were raided, officials said.
The investigation is into alleged non-implementation of development works and misappropriation of funds allocated for the development of Asanang Constituency under the GHADC.
According to officials from the total allocation ₹28.66 crores, committee members in collaboration with some suppliers “diverted” and “misappropriated” funds in violation of established rules and procedures.
Specifically, cases where 60 per cent of the sanctioned funds were “irregularly” released to contractors Kubon Sangma and Nikseng Sangma, in violation of applicable rules and regulations, they said.
On the instructions of one Ismail Marak, several checks were issued in their names and subsequently Kubon Sangma collected the entire amount and handed it over to Marak, while Nikseng Sangma transferred his share directly to the bank account as instructed, ED officials said.
