ED Seizes Rs 37.13 Crore Assets in Mumbai and Bhopal in Rs 10,000-Crore Ponzi Scam
The Enforcement Directorate (ED) has frozen and seized assets worth around Rs 37.13 crore during searches in Mumbai and Bhopal in connection with an alleged Rs 10,000-crore Ponzi scam, the agency announced on Tuesday. The scheme was allegedly operated by a business group controlled by S Agrawal, which fraudulently collected funds from the public through cooperative societies and investment schemes.
According to officials, several cooperative societies are under investigation, including the Loni Urban Multi-State Credit and Thrift Co-operative Society (LUCC) and its affiliated entities.
During searches conducted between Thursday and Sunday at multiple residential and business premises associated with accused persons and suspects, the agency seized suspicious documents and froze proceeds of crime worth approximately Rs 30 crore. The frozen assets include listed shares and securities, mutual fund instruments, insurance policies, and bank balances.
Investigators also seized Rs 1.53 crore in cash, foreign currency valued at Rs 35 lakh, and gold jewellery and silver bullion worth Rs 5.25 crore.
The ED initiated its money-laundering probe based on multiple cases registered by police departments in Uttar Pradesh, Madhya Pradesh, and other states against LUCC and related cooperative societies. Police cases state that since 2009, the group induced the public to put money into recurring deposits, fixed deposits, and monthly-income schemes by promising extraordinarily high returns.
Investors were assured that their money would triple within five years and were offered incentives such as cars. However, police investigations found the group had no legitimate business operations capable of producing such returns. More than Rs 10,000 crore was collected from the public, predominantly in cash.
While initial payouts were made to investors, the ED stated that most funds were subsequently siphoned off by the accused and their associates for personal use and to pay commissions to agents. The collected funds were allegedly channelled through shell companies into movable and immovable assets in India and abroad.
The recent searches revealed a network of roughly 50 shell entities managed by operators identified by the agency. Officials noted that S Agrawal, the alleged principal controller of the business group, is currently located abroad.
The ED had previously issued two provisional attachment orders in the case and arrested RS Tiwari, a key functionary of the group, on July 14. One charge sheet has been filed so far.
