ED attaches properties worth Rs 200 crore of pvt firm in ponzi scheme

The Enforcement Directorate (ED) on Thursday attached assets worth Rs 200 crores of a private company which is accused of cheating public with a ponzi scheme.

Several properties including flats, factories, hotels, amusement park, tea estate, office spaces registered in the name of sixteen different companies of Basil International Limited (BIL) in Assam, West Bengal, Odisha, Jharkhand, Uttar Pradesh, Tripura, Maharashtra were attached under provisions of Prevention of Money Laundering Act (PMLA).

Apart from the immovable properties, bank balance of Rs 1.77 crore maintained in 15 accounts of BIL and its associate companies have also been attached.

The ED had initiated an investigation under PMLA on the basis of a charge sheet filed by the Central Bureau of Investigation (CBI) against the company and others for cheating people by promising huge and unsustainable returns.

Investigation revealed that the funds were fraudulently collected through a chain of agents located in over seven states of the country.

"These schemes were sold not only in the name of BIL but also in the name of many other companies like Vamshi Chemicals Limited, Nixcil Pharmaceuticals & Specialties Limited and Basil Express," a press communique said.

The investigation also revealed that the funds collected through the schemes were illegally diverted by creating a web of shell companies, it said.

The ED has claimed to have identified more than 60 private and public limited shell companies so far.