ED files chargesheet against Haryana firm, directors who duped 31 lakh investors

PTI | New Delhi | Updated: 23-01-2021 16:12 IST | Created: 23-01-2021 15:52 IST
ED files chargesheet against Haryana firm, directors who duped 31 lakh investors
Image Credit: wikipedia

The Enforcement Directorate Saturday said a money laundering charge sheet has been filed against a Haryana-based company and its directors accused of cheating about 31 lakh investors by way of a Ponzi or fraud multi-level marketing scheme.

It said a prosecution complaint or charge sheet has been filed against Hisar-based Future-Maker Lifecare Pvt Ltd and its two directors Radhe Shyam and Bansi Lal under various sections of the Prevention of Money Laundering Act (PMLA).

The charge sheet has been filed before a special PMLA court in Panchkula "with a prayer for awarding punishment to the accused persons and confiscation of attached assets to the tune of Rs 261.35 crore".

According to an ED statement Radhe Shyam and Bansi Lal, both residents of Haryana floated companies in the name of Future Maker Life Care Pvt Ltd and FMLC Global marketing Pvt Ltd.

"Through these companies, they have duped innocent persons in the guise of a multi-level marketing (MLM) scheme that promoted various Ponzi schemes in many parts of the country," the Enforcement Directorate alleged in the statement issued here.

An MLM scheme works in a pyramidal structure where the persons at the top gain at the behest of the loss borne by the persons at the base of the pyramid. The ED's money laundering case against the accused was filed after taking congnisance of multiple Haryana and Telangana police FIRs registered against the accused for "cheating lakhs of investors".

The Haryana Police had slapped charges of cheating and conspiracy under various sections of the IPC and those under the prize chit and money circulation banning Act of 1978 read with Haryana protection of interest of deposits in Financial Establishment Act of 2013 against the accused, the central probe agency said.

The ED said its probe found that "around 31 lakh investors lost their money by making investments in the schemes floated by the accused".

"In this scheme, the initial investors were paid high returns to attract more investors and entice current ones to invest more money. When other investors begin to participate, a cascading effect begins," it said.

The schemer pays a "return" to initial investors from the investments of new participants rather than from genuine profits, it said, describing the modus operandi allegedly deployed by the accused to perpetrate the fraud. "Radhey Shyam used to lure innocent persons through speeches in fancy seminars conducted across India promising high returns of up to 5-8 times of the investment in two years." "Bansi Lal was the financial mastermind whose role was layering and laundering of the tainted money collected from the investors in various paper concerns," the ED claimed.

The funds so collected, it said, were "diverted" into the bank accounts of their family members and then properties were acquired using the ill-gotten money. The agency had attached assets worth Rs 261.35 crore of the accused in the past and they consisted of a flat in Chandigarh, two in Delhi, some agricultural land parcels, a balance in bank accounts, and some cash.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)



Why unequal access to coronavirus vaccines is a threat to us all

... ...

India’s love affair with fossil fuels: the path to sustainable development?

... ...


Latest News

Hybrid event platforms can be the next trend in 2021 to organise virtual events

Chennai Tamil Nadu India, February 26 ANINewsVoir A leading hyper-automation services company based out of Chennai, Vuram builds EventHall, a one-of-a-kind platform to host its annual company event Vuram Day. Almost 700 people, including Vu...

Spain's former king pays 4 million euros in back taxes amid scandals

Spains former King Juan Carlos, who left the country in August amid a cloud of scandals, has settled a back tax bill worth more than 4 million euros 4.9 million, El Pais and El Mundo reported on Friday. It was the second such payment by the...

Better Call Saul Season 6 likely to end with explosive suspense

Filming on Better Call Saul Season 6 will begin soon. It was renewed just right after the fifth season premiered on AMC. Michael Mando tweeted on February 16, 2021 about his departure from Canada to the United States for filming the series....

BA-owner calls for COVID health passes after record $9 bln loss

British Airways owner IAG is counting on digital health passes to help spur a travel recovery this summer, after the pandemic pushed it to a record 7.4 billion euro 9 billion loss last year when it ran just a third of normal flights.Tighter...

Give Feedback