ED attaches Rs 150 cr worth property of Gold Quest International

Company charged with cheating the public, attachment effected under PMLA

The Enforcement Directorate, Chennai has attached properties worth Rs 150 crore belonging to Gold Quest International Chennai, under the Prevention of Money laundering Act, 2002 (PMLA), for cheating the public.

In a case of money circulation business and cheating the public, properties worth of over 150 crore of the company were attached under the provisions of the Act, an official statement said.

Based on various complaints, the Tamil Nadu police registered a case in 2009 against Gold Quest International Pvt. Ltd, Chennai for selling gold coins and other articles at exorbitant prices, stating they were limited edition products having numismatic values. Preliminary enquiries by Police revealed that the company had, apart from luring the public towards such articles, also paid huge commissions as marketing incentives, it added.

As cheating is a scheduled offence and there appears to be prima facie evidence of money laundering, ED Chennai registered an ECIR in 2016 and investigations under PMLA were initiated.

Several people who were at the helm of affairs, such as Pushpam Appalanaidu, K Padma and Munnawar Ahamed were examined and voluntary statements were recorded under the provisions of PMLA.

Investigations under the Act revealed that several properties were acquired by such people and also using the proceeds of crime, several properties were acquired in the name of Gold Quest International Pvt Ltd, Quest net enterprises, Pallava Resorts Ltd. and other companies.

"On the reasonable belief that these properties are involved in the offence of money laundering, these properties were provisionally attached under the provisions of PMLA," the statement added. There have been several complaints against the company in the past as well, according to earlier reports.