Bengaluru: The Directorate of Enforcement (ED) carried out search operations on June 27 under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) at five locations in Bengaluru and Mandya belonging to Hindustan Infracon India Ltd. and related persons in a Ponzi Scheme fraud case.
Earlier, ED had recorded a case of money laundering on the basis of an FIR registered by the Vijayanagar Police Station, Bengaluru City, under various sections of the IPC, against Hindustan Infracon India Ltd. and its promoters/directors for cheating the investors /common public to the amount of Rs 191.54 crore, ED said in a statement here on Monday.
An investigation by the ED revealed that the promoters/directors of M/s Hindustan Infracon India Ltd lured prospective investors by offering high interest rates on different schemes for their investment. However, the said company did not return the deposit and interest due to the investors, thereby cheating them.
The said company had collected Rs 389 crore approximately from about 7.18 lakh investors. However, the said company failed to return the amount to the tune of Rs 199 crore (approximately) to the investors and thus cheated them of their hard-earned money.
The search operations resulted in the seizure of incriminating documents and records of cash transactions. The diversion of proceeds of crime into the purchase of various immovable properties was detected, and the related documents were seized.
Further investigation is in progress.