ED attaches assets worth over Rs. 3 crore in ponzi scheme fraud case

The Enforcement Directorate (ED) has attached movable and immovable properties worth Rs. 3.06 crore under the Prevention of Money Laundering Act (PMLA) in connection with multi-level marketing and ponzi scheme fraud case.

The assets were acquired by M/s Gold Sukh Trade India Ltd. and its Directors Narendra Singh, Mahendra Kumar Nirwan, Manvendra Pratap Singh Chauhan, Pramod alias Bablu Sharma and others.

An First Information Report (FIR) was registered by the Vidhyakpuri Police Station, Jaipur against the company and its directors, shareholders and team leaders for grabbing public deposits during 2008-09 to 2010-11.

The State police have filed charge sheet against the accused persons under Indian Penal Code (IPC) and Prize Chit and Money Circulation Scheme (Banning) Act, 1978 for duping about 1,18,288 investors amounting to Rs. 215 crore approximately.

An investigation conducted by the ED has revealed that during 2008-09 to 2011-12, the company and its directors, their relatives, shareholder, and team leader had laundered the proceeds of money generated from the above offences, and invested/parked these proceeds of crime of into various bank accounts for acquisition of immovable properties, foreign currencies etc.

"These investments were made for the purpose of layering and integration so as to project the proceeds of crime as untainted," the ED said in a statement.

Further investigation in the matter is underway to identify more proceeds of crime in this case.