ED freezes bank balance of ₹8.5cr, seize cash of ₹12.5L
The Enforcement Directorate freezes ₹8.5 crore bank balances and seizes ₹12.5 lakh cash in a probe into an alleged app-based investment fraud involving Chinese nationals.
Kicker: Investment fraud
MUMBAI: The Enforcement Directorate (ED) has frozen bank balances of ₹8.5 crore, and seized cash of ₹12.5 lakh during searches conducted at various locations in Mumbai and three other cities, as part of its money laundering probe into an alleged app-based investment fraud involving Power Bank app, Tesla Power Bank app and Ezplan app.
The ED probe revealed that a few Chinese nationals had allegedly incorporated some shell firms in India with the help of Indian professionals, to float investment-scheme apps on digital platforms, offering lucrative returns to dupe gullible investors, agency sources said. The agency also seized several incriminating documents and digital devices during the searches, apart from the funds and cash in the bank accounts. The searches were conducted in Mumbai, Delhi - National Capital Region, Ahmedabad and Junagadh as part of its probe conducted under the provisions of the Prevention of Money Laundering Act.
The entities/persons covered under the searches included M/s. Dev Enterprises, a proprietorship concern of Viplul Joshi, M/s. Divyam Infracon Private Limited and its director Chothani Gobarbhai, M/s. Tanvi Gold Private Limited and its director Surendra Chaplot, M/s. Capital King Management Private Limited and its director Chirag Patel, according to the agency. The ED investigation is based on various First Information Reports registered by the Uttrakhand police, Special Cell (Delhi Police) and Karnataka Police under various sections of the Indian Penal Code and the Information and Technology Act, 2000.
ED’s investigation revealed that a few Chinese nationals, as part of an alleged larger conspiracy and with the sole object to cheat the Indian public, had incorporated multiple shell companies in India with the help of local professionals including chartered accountants and company secretaries. “Various software applications, including Power Bank App, Tesla Power Bank App and Ezplan, among others, were floated on digital platforms like Google Play Store to lure the gullible public in India into making investment in plans, falsely assuring of huge returns, “ an ED source said.
In earlier searches of the ED, it came to light that the accused/suspects had allegedly diverted huge funds abroad, camouflaging these as proceeds from bogus imports and logistic services. Agency sources said currencies and valuables worth ₹10.34 crore were seized and bank accounts having balances of ₹14.81 crore were frozen.
ED has so far submitted two provisional attachment orders – one in February 2022 and the other in October 2023 - attaching properties and bank accounts’ worth ₹64.36 crore. Three persons were arrested in the case and a chargesheet was submitted against the accused persons in April 2023 in a trial court.