New Delhi: The Enforcement Directorate (ED) on Saturday carried out searches at five locations in Mandya/Bengaluru for alleged money laundering. The searches were carried out at the premises of M/s Hindustan Infracon India Ltd and related persons for allegedly conducting Ponzi fraud.
Days ago, the investigative agency had registered money laundering case against the M/s Hindustan Infracon India Ltd and its promoters/directors for cheating the investors /common public to the tune an amount of Rs. 191.54 Crore. The case was lodged on basis of an FIR registered by Vijayanagar Police Station, Bengaluru City.
The ED sleuths said that investigations revealed the modus operadi of the operators and their wicked designs to loot the common people of their investments.
The company in question lured prospective investors by offering high interest rates on different schemes for their investment, however, after it received considerable deposits, it turned hostile and didn’t entertain them.
The company did not return the deposit and interest due to the investors, thereby cheating the investors.
“It collected Rs. 389 Crore approx from about 7.18 lakh investors. However, the said company failed to return the amount to the tune of Rs. 199 Crore (approx) to the investors and thus cheated them of their hard-earned money,” the ED said in a statement.
The probe agency has unearthed many damning documents and also records of cash transactions, which goes on to show company’s direct role in running a ponzi scam. The proceeds of crime were also siphoned off for personal benefits and also used to purchase immovable properties. Several documents, describing this diversion of money has also been recovered.