2 days ago
ED Arrests Two Over Rs 1,417 Crore Investment Scam
The Enforcement Directorate arrested two men as part of an investigation into an alleged investment scam.
The schemes promised people money from agricultural exports.
Investigators say about 35,759 people invested a total of Rs 1,417.86 crore.
They say the businesses did very little real export work.
Money was moved through more than 100 bank accounts linked to associated firms and people.
The agency says S Naveen Kumar controlled the banking and money movements.
It also says Rs 390.90 crore was recorded as salary, even though the firm had only four staff members.
A court ordered both men to remain in judicial custody for 15 days.
The Enforcement Directorate arrested S Naveen Kumar and S Muthuselvam on September 29 under the Prevention of Money Laundering Act.
The two were remanded to judicial custody for 15 days by a Special Court for PMLA cases.
Investigators say schemes promoted as export investments raised Rs 1,417.86 crore from about 35,759 investors.
The schemes allegedly operated through Unique Exports, East Valley Agro Firms and connected entities, with little substantial export business.
The ED says more than Rs 719 crore entered accounts linked to Unique Exports, and Rs 390.90 crore was falsely recorded as salary payments.
- Who
- The arrested individuals are S Naveen Kumar and S Muthuselvam; the Enforcement Directorate is investigating the alleged scheme.
- What
- Two men were arrested in a money-laundering probe into investment schemes that allegedly collected Rs 1,417.86 crore.
- Where
- The investigation is being handled by the ED’s Chennai Zonal Office-II and stems from an FIR registered by the District Crime Branch in Erode, Tamil Nadu.
- When
- The arrests took place on September 29; the year is not stated.
- Why
- The arrests followed an investigation into alleged money laundering connected to schemes that promised returns from agricultural export profits.
Key facts
- Amount allegedly mobilised
- Rs 1,417.86 crore
- Investors
- Approximately 35,759
- Arrest date
- September 29; year not stated
- Judicial custody
- 15 days
- Accounts linked to Unique Exports
- More than Rs 719 crore deposited
- Alleged false salary entries
- Rs 390.90 crore
- Accounts used to route funds
- More than 100 bank accounts, according to the ED
Sources
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