Kolkata: West Bengal Police have arrested a law officer of the Howrah Municipal Corporation (HMC) and an NGO functionary for allegedly extorting money from hoteliers, private hospital owners and real estate developers by threatening civic action.
The arrests were made by Golabari Police Station following a complaint filed by hotelier Ashish Kapoor, who alleged that the accused demanded ₹50 lakh to prevent demolition action against his hotel properties.
Hotel owner alleges ₹50 lakh demand, death threats
According to the complaint, Ramesh Jaiswal, who runs an NGO, approached Kapoor on July 18, claiming that his hotels near Howrah railway station had illegal structures that could face demolition by the municipal corporation.
Kapoor alleged that Jaiswal told him the matter could be resolved if he paid ₹50 lakh through Sudarshan Jaiswal, the law officer of the Howrah Municipal Corporation.
When Kapoor refused to pay the money, the NGO functionary allegedly returned the following day and threatened to kill him.
Based on the complaint lodged on July 20, police initiated an investigation and arrested both accused on Wednesday.
Police suspect decade-long extortion racket
Investigators believe the two accused may have been operating a similar extortion racket for nearly 10 years.
According to police, they allegedly targeted hotel owners, private hospital operators and real estate developers by threatening municipal action over alleged building violations and then demanding money in exchange for preventing enforcement measures.
Police are examining whether other individuals may have been similarly targeted.
Probe underway into possible wider network
Police are questioning both accused to determine whether additional officials of the Howrah Municipal Corporation were involved in the alleged extortion network.
Investigators are also examining records and other evidence to establish the extent of the alleged racket and identify any additional beneficiaries.
Further investigation into the case is underway.