ED seizes assets worth ₹37 cr in Amber Dalal case

ED Mumbai seized assets worth ₹37 crore in money-laundering probe into Amber Dalal case. Dalal allegedly raised over ₹600 crore from 1,300 investors in suspected ponzi scheme.

Mumbai: The Enforcement Directorate of Mumbai zonal unit conducted searches in the city on Friday at several locations as part of their money-laundering probe into the Amber Dalal case. During the search, they seized movable assets including cash, bank funds and demat account holdings worth ₹37 crore, and various incriminating documents and digital devices were seized.

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ED’s probe is based on a Mumbai police case against a chartered accountant, Amber Dalal, the proprietor of Ritz Consultancy Services, who was accused of collecting money from investors through a suspected ponzi scheme by promising high returns and then absconding with their money after giving initial returns.

ED’s probe revealed that the amount of money raised by Dalal was allegedly more than ₹600 crore from 1,300 investors. Dalal was arrested in March by the Economic Offences Wing (EOW), Mumbai police, and is currently under judicial custody.

Dalal had allegedly raised money from investors on the pretext that he invested funds in nine commodities — gold, silver, crude oil, natural gas, zinc, lead, nickel, copper, and aluminium — and traded in them, the sources said. Dalal allegedly assures such investors that their capital would be safe and promised them a lucrative annual return, between 18 to 22%, to entrap them, the sources said. ED’s probe also learnt that using the same modus operandi, he allegedly raised money from investors in UAE and America as well.

The searches revealed an alleged network of stockbrokers and investment advisors who brought clients for commissions, the sources said. The probe also found allegedly that payments received from new investments were being used to pay out the monthly returns to the old investors and that Dalal diverted the funds received in Ritz’s account to personal accounts, which were further routed to family members’ accounts and used for creating assets, the sources said.

Dalal allegedly diverted around ₹51 crore to his personal accounts. Such funds were allegedly used to acquire assets in India and abroad. Eight such immovable properties in India and two such properties abroad were allegedly identified by the agency, the sources said. “ED’s probe also disclosed that, apart from banking channels, investments were made via cash as well, which was then infused in books as accommodation entries in connivance with Mumbai-based jewellers,” the source said.

Returns on such cash-based investments were allegedly given to investors in India and abroad (including the UK and the UAE) via hawala operators, the sources said.