ED arrests 4 of Chennai firm, alleges role in Rs 1,100 cr investment fraud

ED has initiated investigation under PMLA against Disc Assets Lead India Limited, Chennai and others based on FIR registered by Tamil Nadu Police's Economic Offence Wing

The Enforcement Directorate (ED) has arrested four persons for their alleged involvement in a money laundering case related to an investment fraud of over Rs 1,100 crore.

The accused were on Thursday produced before Sessions Court, Chennai and were remanded to judicial custody for 14 days. The four people include company's CMD N M Umashankar, company's directors N Arunkumar and Saravanakumar and company's MD V Janarthanan.

ED has initiated investigation under Prevention of Money Laundering Act, 2002, against Disc Assets Lead India Limited, Chennai and others based on FIR registered by Tamil Nadu Police's Economic Offence Wing.

The company allegedly collected money under various schemes, stating that the customers would pay a fixed amount every month for a fixed period by the end of which they were promised lands. But the company defaulted and no lands were allotted.

SEBI had initiated inquiries against the firm, stating that they were doing business in a collective investment scheme for which SEBI’s permission was not taken. Then, the company in order to circumvent these SEBI provisions, started collecting money from the Customers through another company by name Dal Marketing Solutions Limited. 

According to ED, the company had collected Rs 1,137 crore, however, inconsistencies have been found in data submitted by senior officials of the firm.

Investigations under PMLA revealed that the amounts collected have been diverted in the form of investment in various subsidiaries, Royalty, donations, land advance, commission etc. to many entities in which their immediate family members were the key managerial personnel.