ED Seizes Rs 37 Crore in Bank, Demat Accounts Linked to Mumbai Ponzi Scheme
Mumbai, 24th June 2024: Bank and demat account deposits totalling approximately Rs 37 crore have been seized by the Enforcement Directorate (ED) in connection with a money laundering investigation against a Mumbai-based financial consultant and his firm accused of defrauding investors of Rs 600 crore through a Ponzi scheme.
The ED conducted raids in Mumbai on June 21 targeting Amber Dalal and Ritz Consultancy Services, as part of a probe linked to an FIR filed by Mumbai Police. The FIR alleges that Dalal, a Chartered Accountant, and his company operated a suspected Ponzi scheme promising high returns, ultimately absconding with investor funds after initially paying returns.
According to the ED, Dalal raised over Rs 600 crore from 1,300 investors, promising annual returns of 18-22% by purportedly investing in commodities like gold, silver, crude oil, and others. The investigation revealed that he also solicited funds from investors in the UAE and USA using a similar approach.
During the search operations, the ED uncovered a network involving stockbrokers and investment advisors who recruited clients in exchange for commissions. Funds from new investors were allegedly used to pay monthly returns to older investors, with substantial amounts diverted into personal accounts and used to acquire assets both domestically and internationally.
The ED identified eight immovable properties in India and two abroad acquired with diverted funds. The investigation also found that cash investments, routed through Mumbai-based jewellers as accommodation entries, were used to provide returns to investors in India and abroad, facilitated through hawala operators.
In addition to freezing bank deposits and demat accounts totalling Rs 37 crore, the ED seized incriminating documents and digital devices during the raids. Amber Dalal has been arrested by the Economic Offenses Wing (EOW) of the Mumbai Police and is currently in judicial custody pending further legal proceedings.
