Ritz Consultancy owner Amber Dalal remanded to ED custody

MUMBAI: A special court designated under the Prevention of Money Laundering Act (PMLA) has remanded Amber Dalal, owner of Ritz Consultancy Services, to the Enforcement Directorate (ED) custody for five days, till December 2, in connection with an alleged ₹564-crore investment fraud case

MUMBAI: A special court designated under the Prevention of Money Laundering Act (PMLA) has remanded Amber Dalal, owner of Ritz Consultancy Services, to the Enforcement Directorate (ED) custody for five days, till December 2, in connection with an alleged ₹564-crore investment fraud case.

Ritz Consultancy owner Amber Dalal remanded to ED custody

The court observed that without Dalal’s custodial interrogation, the investigating agency would face challenges in tracing the end use of the proceeds of the crime.

The case originated at Oshiwara police station in March 2024 following a complaint from an investor. (SEE BOX) The complaint was later transferred to the Economic Offences Wing (EOW). According to the FIR, Dalal assured investors that their funds would be invested in commodities such as gold, silver, crude oil, and natural gas, promising monthly returns of 1.5% to 1.8%. Dalal reportedly paid returns regularly until February 2024, after which he absconded.

The ED investigation revealed that Ritz Consultancy collected funds through three bank accounts: Bank of India, ICICI Bank, and Kotak Mahindra Bank. After Dalal absconded, more than 2,000 investors were found to have been defrauded of ₹564 crore.

Allegations by ED

The ED alleged that Ritz Consultancy was not registered with any regulatory body such as SEBI, RBI, or the Forward Markets Commission, which is required for providing investment advisory services or collecting public funds. The investigators further claimed Dalal operated a Ponzi scheme, using money from new investors to pay returns to earlier investors.

Funds were allegedly diverted to bank accounts held by Dalal’s family members, though operated by Dalal without their knowledge. The prosecution argued that Dalal routed and diverted the funds to acquire assets both in India and abroad.

Legal proceedings

The ED registered an Enforcement Case Information Report (ECIR) against Dalal in May 2024. He has been in judicial custody since May, following his arrest by the EOW. Prosecutors argued before the court that Dalal’s custody was essential to trace the money trail, recover defrauded funds, and identify other accomplices. They submitted that Dalal was the mastermind behind the large-scale fraud and the primary beneficiary of the laundered money.

Dalal’s defence counsel argued for minimal ED custody. However, the court noted that given the scale of the crime and Dalal’s alleged role as the mastermind, custodial interrogation was essential to unearth the proceeds of the crime and trace assets.

The court stated, “Considering the magnitude of the crime and prima facie evidence indicating that the accused is the mastermind, it is necessary for the ED to trace the remaining proceeds of the crime. Custodial interrogation is required, and hence, the accused is remanded to ED custody till December 2, 2024.”