Patna: The Enforcement Directorate (ED), Patna Zonal Office, has arrested Jawahar Lal Shah under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with a Ponzi scheme, an official said.
Shah was produced before the Special PMLA Court in Patna wherein he was sent to judicial custody, the official said on Wednesday.
The ED initiated an investigation based on an FIR registered by the Bihar Police under sections of IPC, 1860, against Mahua JLG Development Cooperative Society Ltd, Jawahar Lal Shah, and others.
The ED investigation revealed that Shah in connivance with his associates formed various companies or co-operative societies namely Mahua Joint Liability Group Dairy Products and Agro Industries Ltd, Mahua Joint Liability Group Development Cooperative Society Ltd, Mahua Gavy Prasankaran Swavlambi Sahkari Samiti Limited, etc., and collected money around Rs 25 to 100 crore from the public with assurance to pay higher returns.
The companies/co-operative societies failed to pay the assured return to the investors on maturity and shut down their offices.
The investor’s funds were layered, laundered, and diverted to the accounts of Jawahar Lal Shah and his associated persons/entities and part of which has been utilised in acquiring immovable properties.
During the ED investigation, searches were conducted under section 17 of PMLA at the premises linked with Jawahar Lal Shah and other associates at five locations in Bihar, West Bengal, Delhi, and Uttar Pradesh on January 7, which resulted in recovery and seizure of incriminating documents, including digital devices.
Further investigation into the case is underway.
The Prevention of Money Laundering Act, 2002 (PMLA) is a criminal law enacted to prevent money laundering and to provide for confiscation of property derived from, or involved in, money laundering and for matters connected therewith or incidental thereto. ED has been given the responsibility to enforce the provisions of the PMLA by investigating to trace the assets derived from proceeds of crime, provisionally attaching the property, and ensuring prosecution of the offenders and confiscation of the property by the Special court.
(IANS)
