New Delhi [India], July 24 : The Directorate of Enforcement (ED) has arrested State Secretary of Samajwadi Party Uttar Pradesh unit, Dinesh Kumar Singh, as part of a money laundering probe connected to the ‘Bike Bot’ scam case.
ED had conducted searches on July 21 at his premises in Noida and arrested him on the same day
A court remanded Singh to ED custody till July 26.
During an investigation, incriminating evidence against him were found and seized from his premises.
ED initiated the investigation on the basis of UP Police FIRs registered on the basis of complaints made by people who were defrauded allegedly by Garvit Innovative Promoters Ltd. (GIPL), Sanjay Bhati and other persons.
ED investigation revealed that in 2017, the accused Sanjay Bhati and others floated lucrative investment schemes in the name of BIKEBOT. As per the scheme, a customer could invest in one , three, five or seven bikes, which would be maintained and operated by the company and the investors would be paid monthly rental, EMI and bonus (in case of investment in multiple bikes).
“ED investigation further revealed that funds so collected were rotated in a fashion akin to a ponzi scheme and were ultimately used in the creation of assets in the name of the company and other persons,” the agency added.
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