The Enforcement Directorate (ED) Mumbai Zonal Office conducted search operations on June 21 under the provisions of the Prevention of Money Laundering Act, 2002, at various locations as part of an ongoing probe in the Amber Dalal case. During the search, movable assets, cash, bank funds, and demat account holdings amounting to Rs 37 crore were frozen. Several incriminating documents and digital devices were found and seized.
Also Read: Ponzi Scheme: Amber Dalal Who Duped Investors of Over 1,000 Crores Nabbed in Uttarakhand
The ED initiated its investigation based on an FIR registered by Mumbai Police against Amber Dalal, the proprietor of Ritz Consultancy Services. Dalal is accused of operating a Ponzi scheme, taking money from investors with promises of high returns, then absconding with the funds after providing initial payouts. Authorities have determined that Dalal raised more than Rs 600 crore from 1,300 investors. He was arrested by the Economic Offenses Wing (EOW) of Mumbai Police and is currently under judicial custody. An official statement from the ED revealed that Dalal collected money from investors under the pretense of investing in nine commodities—gold, silver, crude oil, natural gas, zinc, lead, nickel, copper, and aluminum—promising annual returns of 18% to 22%. The investigation uncovered that Dalal used similar tactics to raise funds from investors in the UAE and the USA.
The search operations exposed a network of stockbrokers and investment advisors who recruited clients in exchange for commissions. It was also found that payments from new investments were used to pay returns to previous investors. Dalal diverted approximately Rs 51 crore from Ritz's account to his personal accounts, routing further funds to family members and using them to acquire assets both in India and abroad. Eight such properties have been identified in India and two abroad. The ED stated that in addition to banking channels, some investments were made through cash. These funds were laundered through accommodation entries in collusion with Mumbai-based jewelers. Returns on these cash investments were provided to investors in India and abroad, including the UK and UAE, via hawala operators.