ED searches 15 premises in Mumbai, Nagpur in an ongoing money laundering case
Mar 06, 2023
New Delhi [India], March 6 : The Directorate of Enforcement (ED) has conducted search and survey operations at 15 different places in Nagpur and Mumbai in an ongoing investigation under PMLA 2002 (Prevention of Money Laundering Act, 2002) relating to the investment fraud of Pankaj Mehadia and others.
Searches were done on Friday at the residences and offices of Pankaj Mehadia, Lokesh Jain, and Karthik Jain, who was the main accused of the alleged scam. Besides, searches were also done on the office and residential premises of the main beneficiaries.
Gold and diamond jewellery worth Rs 5.51 crore, cash of approximately Rs 1.21 crore, digital devices and various incriminating documents were recovered during the searches.
"ED initiated PMLA investigation based on the predicate FIR registered at Sitabuldi Police Station, Nagpur, against Pankaj Nandlal Mehadiya, Lokesh Santosh Jain, Kartik Santosh Jain, Balmukund Lalchand Keyal, Premlata Nandlal Mehadiya in a fraud causing loss to investors in crores of rupees," the enforcement agency said in a release on Monday.
According to the release, the investigation revealed that Pankaj Nandlal Mehadia along with other accomplices were running a Ponzi scheme and lured various investors by promising to give 12 per cent assured profit after deducting TDS (Tax Deducted at Source) on the investments made from the year 2004 to 2017.
Throughout the period of 2005 to 2016, the accused persons, according to the enforcement agency, ran the ponzi scheme giving assured returns to win over the investors and thus luring the investors to invest in larger amounts in the associated firms/companies and ultimately did not return the money.
"In order to divert the money and to give the transactions a tinge of legitimacy, transactions worth more than Rs 150 Crore have been affected in the Bank accounts and it is suspected that most of these transactions are not backed by genuine business deals and are in the nature of accommodation entries."
Further investigation into the case is under progress.
