The ED has attached assets worth Rs 65 crore in connection with its two money laundering probes in ponzi scheme scams. In the first case, it issued a provisional attachment for assets worth Rs 35.55 crore in a “multi-level marketing (ponzi) case” pertaining to a Chennai-based firm. The Enforcement Directorate registered this case on the basis of a complaint of Andhra Pradesh Police which charge-sheeted the firm and its directors for “operating money circulation scheme (ponzi) by paying commission for enrolling members and selling product kits, which is banned under Prize, Chits and Money Circulation (Banning) Act, 1978”.
The agency said the Directors cheated buyers and distributors by promising huge commissions which are “impossible”, and such a modus operandi has been adopted by criminals in ponzi scam cases reported from across the country.
In another case, the central probe agency attached assets worth Rs 29.45 crore of a Jaipur-based firm involved in running a ponzi scheme in Odisha and cheating gullible investors.
The attachment of assets under the Prevention of Money Laundering Act is aimed at depriving the accused from taking benefits of his ill-gotten wealth and such an order gets confirmed after an order is passed by the Adjudicating Authority of the said Act within 180 days.