New Delhi, Sep 19 In fresh action in a financial fraud case, the ED recovered incriminating documents in searches in Delhi, Noida, Ghaziabad, Vaishali (Bihar), and Dehradun against a company which cheated investors and collected unauthorised deposits of Rs 521 crore in 21 bank accounts, an official said on Friday.
The Directorate of Enforcement (ED), Ranchi Zonal Office conducted the search operations on September 16 against Maxizone Touch Pvt. Ltd. and its directors Chander Bhushan Singh and Priyanka Singh.
Chander Bhushan Singh and Priyanka Singh absconded with the public funds and for the past three years, they have been deliberately evading law enforcement agencies, including the Jharkhand, Rajasthan, and Assam Police, the ED said.
Multiple premises located in Delhi, Noida, Ghaziabad, Vaishali (Bihar), and Dehradun were searched under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The ED initiated investigation on the basis of multiple FIRs registered by police in Jharkhand, Bihar, Uttar Pradesh, Rajasthan, and Karnataka against the company and its directors for cheating the public.
The ED investigation revealed that the accused orchestrated a fraudulent Multi-Level Marketing (MLM) scheme, luring the general public with promises of high monthly returns and attractive referral benefits.
Through this modus operandi, they collected unauthorised deposits amounting to over Rs 521 crore across at least 21 bank accounts, thereby generating massive Proceeds of Crime (PoC), the ED said.
The investigation indicates that the accused laundered the illicit funds by acquiring numerous properties through benami transactions and converting the deposits into cash.
The ED said that to conceal their identities and evade arrest, the offenders were found to be using fake identity documents, including a pseudo name 'Deepak Singh', and frequently changing their locations.
During the search operations, the ED unearthed and seized a significant volume of incriminating evidence including fake identity cards, handwritten notes and diaries detailing crucial financial transactions and cash dealings, details of associates, cheque books of various entities, digital evidence in the form of laptops and mobile phones, and documents and agreements pertaining to a large number of real estate properties.
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