In a major step towards strengthening its response to rising financial crimes, the Maharashtra State Government has formally established an Economic Intelligence Unit (EIU) under the Home Department. The unit has been introduced in response to a notable surge in investment scams and white-collar crimes that have increasingly targeted citizens with promises of extraordinary financial returns.
The announcement regarding the formation of the EIU was made during the 2025 Budget Session by the Minister of State for Home Affairs, Yogesh Kadam. It was conveyed that the EIU had been envisioned as a specialised arm tasked with tracking, analysing, and preventing financial frauds within the state. Its core responsibilities have been defined to include the identification of dubious financial institutions, the monitoring of suspected banking activities, and the detection of economic crime networks, in collaboration with intelligence agencies.
The establishment of the EIU has been viewed as a strategic intervention aimed at improving financial oversight and early detection of fraud patterns. It was stated that the unit would operate behind the scenes to ensure the financial safety of Maharashtra’s residents. The move has been initiated under the strategic guidance of Chief Minister Devendra Fadnavis, who has been credited with reinforcing the state’s commitment to combating economic offences. Soon after the announcement, the Economic Offences Wing (EOW) of the Mumbai Police was tasked with operationalising the unit. The EIU has since been placed under the supervision of a Senior Police Inspector, with two Assistant or Sub-Inspectors and eight police personnel assigned to support its operations.
The creation of this unit has also marked a revival of a concept that had been shelved several years ago. It was recalled that a similar intelligence wing had been disbanded approximately five years prior due to allegations of internal corruption. However, the necessity of such a mechanism was strongly highlighted in early 2025 following the exposure of the Torres Ponzi scheme. In this high-profile case, nearly 15,000 individuals had been defrauded of around ₹150 crore by an overseas-led syndicate, allegedly managed by Ukrainian masterminds.
The absence of financial intelligence infrastructure at that time was widely criticised, as no prior alerts had been generated, nor had any early intervention been made possible. This lack of surveillance allowed foreign entities to establish operations in Mumbai and offer fake investment schemes with impunity. In response to these developments, Mumbai Police Commissioner Vivek Phansalkar had issued an order in April 2025 to formally reintroduce a dedicated Economic Intelligence Unit under the EOW. The directive was reportedly based on internal evaluations and media reports that pointed to the growing vulnerability of Mumbai’s financial ecosystem in the absence of a monitoring body.
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