Chennai: The Enforcement Directorate (ED) has arrested S. Naveen Kumar and S. Muthuselvam in an alleged investment fraud involving Unique Exports and associated entities, which the agency says collected around Rs 1,417.86 crore from 35,759 investors, central agency officials said on Thursday.
They were arrested on September 29 under Section 19 of the Prevention of Money Laundering Act.
A special PMLA court remanded them to 15 days’ judicial custody, the agency said in a statement.
The investigation began following an FIR registered by the District Crime Branch in Erode under provisions of the Indian Penal Code and the Tamil Nadu Protection of Interests of Depositors Act.
According to the ED, the accused and their associates operated schemes through Unique Exports, East Valley Agro Firms and related entities, promising investors high returns from agricultural exports.
Investigators allegedly found that these entities had not undertaken substantial exports but continued collecting money by promising profits from the business.
The agency said Rs 719 crore was deposited in bank accounts linked to Unique Exports.
Funds were allegedly routed through more than 100 accounts belonging to the firm, associated concerns, family members and close associates.
Naveen Kumar, the proprietor of Unique Exports, allegedly devised the schemes and controlled banking operations and the movement of investors’ money.
The ED said that banking records showed Rs 390.90 crore as salary payments, although only four people worked in the concern.
Another Rs 79.56 crore was recorded as expenditure on onions and other commodities without actual purchases.
These transactions allegedly concealed investor funds as business expenditure.
Muthuselvam allegedly helped operate the schemes, recruit investors and channel funds.
Against an investment of around Rs 42.10 lakh, he allegedly received Rs 12.72 crore in returns, commissions, referral benefits and other payments.
He allegedly distributed investor funds through personal accounts and connected businesses.
Earlier, the ED searched nine premises linked to Naveen Kumar and his associates on June 16 and 17.
In other Tamil Nadu cases, the ED arrested former Minister V. Senthil Balaji on June 14, 2023, in a money laundering investigation linked to an alleged cash-for-jobs scam involving State transport corporations.
The agency also arrested Jaffer Sadiq on June 26, 2024, and Mohammed Saleem on August 12, 2024, in a separate money laundering investigation linked to alleged international drug trafficking.
Further investigation into the Unique Exports case is continuing, the central probe agency said.
(IANS)
