Chennai: The Directorate of Enforcement (ED) on Wednesday said it conducted search operations at eight business and residential premises across Tamil Nadu’s Chennai, Erode, Coimbatore, and Krishnagiri districts in connection with a money laundering investigation linked to an alleged Ponzi scheme run by M/s Unique Exports and its associates.
The raids were conducted by ED’s Chennai Zonal office on Tuesday, under Section 17(1) of the Prevention of Money Laundering Act (PMLA), based on multiple FIRs registered by the Tamil Nadu and Karnataka Police under various provisions of the Indian Penal Code.
According to the ED, its investigation revealed that the Ponzi scheme was allegedly masterminded by S. Naveen Kumar along with his associates, including Jeevalatha, K. Prabhu, K. Mathan Kumar, Muthuselvam, J. Franklin, and others.
The accused allegedly lured hundreds of investors by promising exorbitant returns through investments in the export business of agricultural commodities such as onions, potatoes and other produce.
Investors were offered various schemes assuring returns of over 200 per cent within a short period. They were also encouraged to bring in relatives and friends by being promised attractive referral commissions.
The ED further found that several entities, including M/s Unique Exports, M/s East Valley Agro Farms, M/s Unique Rubber Industries, M/s Unique International Group, M/s Sara Exports, M/s Indo Russian Rare Earth Metals and M/s Indo Russian Business Associates, were allegedly floated to collect funds from investors and layer the proceeds through multiple bank accounts.
The investigation has so far indicated that nearly Rs 400 crore was fraudulently mobilised from the public. The proceeds of crime were allegedly diverted into real estate investments, fixed deposits, foreign transactions and transfers to associates and related entities.
During the searches, ED officials seized laptops, mobile phones, pen drives and other digital devices. Several incriminating documents relating to the alleged Ponzi scheme and investments in immovable properties were also recovered. Additionally, two luxury vehicles were seized during the operation.
Further investigation into the case is underway.
(IANS)
