Hyderabad, Sep 3 The Enforcement Directorate (ED) has arrested Aryan Singh, Chief Operating Officer of Capital Protection Force Pvt Ltd, in connection with the Rs 792 crore Ponzi scheme disguised as an invoice discounting platform.
ED, Hyderabad Zonal Office, arrested the accused under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in connection with an ongoing investigation against Capital Protection Force, Amardeep Kumar and others.
Aryan Singh was produced before the Special PMLA Court, which remanded him to 14 days' judicial custody.
ED said in a statement on Wednesday that it initiated an investigation on the basis of three FIRs registered by the Economic Offence Wing, Cyberabad, wherein it was alleged that Amardeep Kumar, Capital Protection Force and others fraudulently cheated gullible investors on the pretext of high returns on their investments.
The investigation by the Central agency revealed that Capital Protection Force, in the name and style of ‘Falcon invoice discounting scheme’, lured investors on the pretext of providing funds for invoice discounting in exchange for promising returns based on the invoices discounted, but failed to repay their invested amounts.
According to the statement, Amardeep Kumar was the mastermind behind the scam, and he developed the Falcon invoice app in order to receive deposits from the investors. ED investigation revealed that in reality, no business of invoice discounting was carried out, and the accused cheated investors to the tune of about Rs 792 crore.
The investigation further revealed that Aryan Singh, in his capacity as Chief Operating Officer of Capital Protection Force, was actively managing the operations of the fraudulent ‘Falcon Invoice Discounting’ scheme in collusion with the mastermind, Amardeep Kumar. Though Aryan Singh had complete knowledge of the fact that there was no genuine business activity, he lured unsuspecting investors into the scheme.
Aryan Singh managed a team of employees who not only promoted the fraudulent business but also interacted with investors to gain their confidence. He also assisted Amardeep Kumar in diverting the invested funds and personally benefited by receiving Proceeds of Crime amounting to Rs 2.88 crore in his five personal bank accounts, as well as the bank account of his entity, Karaoi (OPC).
The ED had earlier seized a Hawker 800 A aircraft in the case; attached movable and immovable properties worth Rs 18.14 crore, and arrested Sandeep Kumar (brother of main accused Amardeep Kumar) and Shard Chandra Toshniwal, Chartered Accountant. Further investigation is in progress, the agency added.
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