ED Escalates Probe into Merlin Group: Fresh Raids Target Alleged Land Fraud in Kolkata

A Widening Net: Enforcement Directorate’s Fresh Action on Merlin Group

The real estate sector in Kolkata is under intense scrutiny following a fresh wave of searches conducted by the Enforcement Directorate (ED). In a significant escalation of its ongoing investigation, the federal agency carried out coordinated raids on April 17, 2026, targeting multiple premises linked to the Merlin Group and its associated entities. This latest operation follows an earlier round of searches conducted on April 8, signaling the agency’s determination to unearth deep-rooted financial irregularities. The probe, which is being conducted under the Prevention of Money Laundering Act (PMLA), has brought the company’s high-profile promoters, Sushil Mohta and Saket Mohta, squarely under the scanner, casting a long shadow over the developer’s recent projects.

The Core of the Allegations: Land Grabbing and Forgery

At the center of this investigation lies a complex web of allegations concerning land acquisition and ownership. Investigators have indicated that the case traces back to disputes over prime land parcels in the Anandapur area of Kolkata, most notably involving the ambitious residential project, Merlin Niyasa. According to agency findings, the Merlin Group is accused of orchestrating a “false chain of title” using forged and fabricated documents to establish ownership of land that was reportedly contested.

The ED alleges that these forged documents were used to project the company as the lawful owner of the land, thereby inducing homebuyers and investors to pour substantial capital into these projects. This modus operandi, investigators claim, allowed the company to commercially exploit land that was allegedly obtained through illicit means. The accusation of land grabbing is not new to the group, but the systematic nature of the alleged forgery—coupled with claims of large-scale investor fraud—has transformed this into a high-priority case for federal regulators.

Parallel Probes and Expanding Horizons

The investigation has gained significant momentum with the involvement of the Income Tax Department, which has launched parallel searches at related premises. The multi-agency crackdown suggests that authorities are not just looking at land records, but are also tracing a complex money trail. During the latest searches, ED teams targeted key locations in Kolkata and North 24 Parganas, covering residences and offices associated with not just the promoters but also allied firms like the DC Paul Group Construction Private Limited.

The probe is also exploring potential political links. Sources within the ED have suggested that they are examining financial connections between the real estate firm and certain politicians and government officials in West Bengal. By scrutinizing these transactions, the agency aims to determine if the proceeds from the alleged land scams were laundered and if they were used to influence local governance or facilitate further irregular real estate deals. As the investigation progresses, officials have hinted that more searches could be on the horizon if the current trails reveal further beneficiaries of these suspected illicit activities.

The Corporate Stance and Market Impact

In response to the intensifying pressure, the Merlin Group has maintained a posture of compliance, denying all allegations of wrongdoing. A spokesperson for the group stated that they are cooperating fully with the investigative agencies and insisted that all their transactions, including those related to the disputed projects, were conducted in a transparent and lawful manner. The company has further defended the title of the Merlin Niyasa project, claiming that various judicial forums, up to the Supreme Court, have previously adjudicated the matter in favor of the current landowners, thus asserting the validity of their development agreement.

Despite these assurances, the impact of the ongoing probe is palpable. The involvement of central agencies like the ED and the Income Tax Department creates a climate of uncertainty for homebuyers and investors associated with the group’s various projects. For a sector that relies heavily on trust and clear legal titles, these developments serve as a stark reminder of the risks associated with disputed land records. As the federal agencies continue to pore over seized financial documents and digital records, the industry awaits further clarity, while the spotlight on Kolkata real estate remains fixed on the outcome of this high-stakes money laundering investigation. For now, the legal battle continues, and the broader real estate market remains watchful of the precedents this case may set regarding transparency and accountability in urban development.