The Enforcement Directorate (ED) has arrested Chhattisgarh-based businessman Krishna Kumar Shrivastava in connection with an alleged ₹15 crore fraud and money laundering case linked to the Raipur Smart City project. According to investigators, Shrivastava used his supposed political connections to convince a private firm and its promoters that he could secure them a lucrative sub-contract under the civic infrastructure initiative — a contract that, as it turns out, never actually existed. After evading arrest for a while, he was finally apprehended and produced before a Special PMLA Court in Raipur, which has remanded him to ED custody until August 7.
A Fake Sub-Contract Built on Borrowed Influence
According to ED's submissions in court, Shrivastava had been absconding for quite some time, which eventually led to a proclamation order being issued against him. During questioning, the agency found that he had allegedly hidden key details about how the money actually moved. Investigators say he presented himself as someone closely connected to a former Chhattisgarh Chief Minister, even claiming to be an Officer on Special Duty (OSD) or Personal Assistant (PA) to a senior political figure — a claim he reportedly used to win the trust of investors and promise them exclusive sub-contracting rights.
The case originally came to light through an FIR filed by Rawat Associates and its promoters, who alleged they were cheated out of ₹15 crore after being convinced to invest in the Smart City project. Investigators later confirmed that the promised sub-contract was completely fabricated, complete with forged documents and false assurances designed to look convincing.
Shell Companies and a Money Trail Leading Overseas
Digging deeper, the ED found that the funds received from the promoters had been routed into bank accounts belonging to five different commercial entities — none of which, on verification, actually existed or operated at their registered addresses. Even more telling, the digital investigation revealed that the messaging account used to share these bank details with the victims was registered in the name of an office peon.
To keep up appearances, the accused reportedly returned around ₹3.40 crore to the complainants, passing it off as a partial return on their investment. But according to the ED, the rest of the money was layered through a complex web of shell companies to hide where it actually came from, before eventually being pushed out of India — disguised as freight charges and container leasing fees — to overseas entities in Dubai, Hong Kong, China, and Singapore.
Not an Isolated Case
The ED has told the court that this wasn't a one-off — Shrivastava allegedly used the same playbook on other people within the regional business community. In one such instance currently under investigation, another businessman was reportedly persuaded to hand over several crore rupees in cash, along with undated signed cheques, after being sold the same story about political proximity.
To piece together the complete money trail, investigators are currently going through an extensive process of auditing services in India-style scrutiny — carefully auditing bank statements, corporate registration records, digital evidence, and cross-border financial channels. The agency has indicated that if the probe uncovers involvement of additional individuals or corporate entities, formal legal action will follow under the PMLA and related laws.