ED probe finds online Ponzi firm collected ₹1,575 crore, investors defrauded of ₹395 crore

The ED uncovered a Ponzi scheme, Pearlvine International, that defrauded investors of ₹395.35 crore from ₹1,575 crore collected across India.

MUMBAI: An alleged online Ponzi scheme operated across India under the name Pearlvine International collected around ₹1,575 crore from investors, of which up to ₹395.35 crore was siphoned off, the Enforcement Directorate (ED) has found during its money-laundering probe.

ED probe finds online Ponzi firm collected ₹1,575 crore, investors defrauded of ₹395 crore

The scheme was allegedly operational between 2018 and March 2023. ED officials said the entities behind it claimed in 2022 that Pearlvine had as many as 80 lakh members in India and abroad. A Ponzi scheme is a form of investment fraud in which returns are paid out using funds brought in from new investors.

According to the ED, the operation was run through a website under the name ‘Pearlvine’, which collected a minimum membership fee of ₹2,250 and allegedly functioned as a Ponzi network. The agency said several seminars were organised across India and even in Thailand to attract new members and promote the scheme’s purported benefits.

“At one point of time in 2022, Pearlvine International claimed a membership of 80 lakh members in India and abroad,” an ED official said.

The ED said its investigation revealed that the total “proceeds of crime” generated in the name of Pearlvine International stood at ₹1,575 crore, while at least ₹395.35 crore was defrauded. The agency has so far provisionally attached assets worth ₹54.98 crore.

The money-laundering probe is based on a case registered by the Meghalaya Police following a complaint by the Reserve Bank of India (RBI), Shillong, officials said. On January 16, the ED filed a supplementary prosecution complaint against 13 accused persons, including NK Gupta, his associated firms and other associates, under provisions of the Prevention of Money Laundering Act (PMLA).

Gupta has been described by the ED as the alleged mastermind of the scheme. The agency claimed he had exclusive control over the Pearlvine website’s backend, user credentials and digital point allocations, and that members across India operated under his instructions. He is also accused of conducting several Pearlvine International seminars in India and Thailand to promote the scheme.