Probe into Merlin Group ‘land scam’ in Kolkata widens as IT jumps in, while ED continues raids
The Statesman | 17 April 2026
The Enforcement Directorate on Friday carried out fresh searches at four locations linked to the Merlin Group in Kolkata, while the Income Tax Department too raided premises associated with the embattled real estate company, intensifying the ongoing probe into alleged illegal land deals.
IT also raised premises linked with TMC MLA Debasish Kumar.
The twin action by central agencies comes less than a week before the first phase of the West Bengal Assembly elections on April 23, pushing the land-grab probe into the centre of a political storm.
According to the ED, searches under the Prevention of Money Laundering Act are being carried out at multiple premises in Kolkata in connection with its ongoing investigation into the Merlin Group.
The locations include residences linked to Sushil Kumar Dhandhania and Vijay Kumar Dhandhania at Middleton Street, premises of DC Paul Group Construction Private Limited in Salt Lake, and residences of its director Kamlini Paul and former director Shanti Ranjan Paul.
The agency is probing allegations of money laundering linked to suspected land grabbing and irregular real estate transactions.
Earlier, ED searches in the case had flagged a pattern of land acquisition through forged documentation and alleged investor fraud, with funds routed through real estate projects.
Separately, officials of the Income Tax Department conducted searches at the residence and electoral camp office of TMC legislator Debasish Kumar in south Kolkata, sources said.
Kumar, who is also Member-Mayor-in-Council at the Kolkata Municipal Corporation and the party’s candidate from Rashbehari, was present at his Manohar Pukur Road residence when teams reached early morning and began simultaneous operations.
The I-T action is linked to the same alleged land-grabbing case being probed by the ED, according to sources.
Kumar had earlier been questioned by the ED and issued multiple notices this month, which he did not comply with.
The case traces back to multiple FIRs registered across West Bengal against an organisation accused of duping investors with promises of high returns from disputed land deals.
Investigators have indicated a “systematic modus operandi” involving forged powers of attorney to facilitate land grabbing. Documents recovered during earlier searches reportedly brought Kumar under the scanner.
As news of Friday’s action spread, Trinamool Congress supporters gathered near Kumar’s residence, alleging a political vendetta by the BJP-led Centre.
Chief Minister Mamata Banerjee had recently flagged concerns over possible arrests of party leaders during the election period.
The Enforcement Directorate had conducted searches at seven locations linked to the Merlin Group in Kolkata on April 8, as part of its ongoing probe. Among the premises raided were the residences of promoter Sushil Mohta and his son Saket Mohta. Properties on Prince Anwar Shah Road and in Salt Lake were also covered during the operation.
The case stems from an FIR registered at Anandapur police station in January this year. The Mohtas, along with several others, have been accused of fraud, forgery, organised criminal activity and criminal conspiracy. These offences carry penalties ranging from five years’ imprisonment to life. The FIR also names senior functionaries of the group, including Dilip Chaudhary, Vikash Memani, Saurav Majumdar and Ranjan Chakraborty.
Investigators allege that the accused created a “false chain of titles” using forged documents to claim ownership of prime land parcels. The complaint was filed by Mohan Chandra Mondal, a resident of Anandapur, who claims these forged papers qualify as “valuable securities” under the law.
According to Mondal, the documents were used repeatedly to falsely establish ownership over high-value immovable assets. He has alleged that these papers were presented as genuine before public authorities, financial institutions and individuals.
Using these documents, the accused are believed to have taken control of land parcels and developed real estate projects. At the centre of the case is a 3.63-acre plot in Anandapur, where a ₹600-crore residential project named ‘Merlin Niyasa’ is currently being developed.
Officials say the Mohtas projected themselves as lawful owners and allegedly siphoned off public investments worth crores. Investigators suspect that several investors were misled into funding projects built on illegally acquired land.
The complaint further states that funds collected from the public, along with assets created from them, may amount to “proceeds of crime”. Officials are examining whether these funds were diverted, including possible transfers abroad, which would attract provisions under the Prevention of Money Laundering Act.
Authorities are also looking into possible links between the group and influential individuals.
Mondal has claimed ownership of the land where ‘Merlin Niyasa’ is being constructed, stating he holds an unbroken chain of title dating back to 1943. He has said that despite approaching the police earlier, no action was taken, prompting him to move court. The court subsequently directed registration of the FIR.
A key element of the case is a purported compromise decree said to have been passed in 1959. However, investigators have found the document to be forged. Officials allege that this document was repeatedly used as a genuine judicial record to establish ownership and justify construction activity at the site.
This is not the first time the Merlin Group has faced legal scrutiny. In September last year, the Calcutta High Court ordered the demolition of a 26-storey tower at Elita Garden Vista in New Town, Kolkata. The tower, promoted among others by Sushil Mohta, was found to have been constructed through fraud, collusion and suppression of facts.
The court’s ruling had raised serious questions about regulatory oversight and highlighted concerns over investor confidence in the state’s real estate sector.