Maharashtra: ED Attaches Assets Worth ₹3.33 Crore In Nashik In Connection With MLM Fraud Case Linked To KBC Multi Trade Pvt Ltd

The Enforcement Directorate (ED) in Nagpur has provisionally attached movable assets valued at Rs. 3.33 crore in Nashik. These assets, currently estimated at Rs. 8.85 crore in the market, were seized under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the case involving M/s KBC Multi Trade Pvt Ltd & Ors.

The attached assets include gold bullion, jewellery, and silver bullion, alleged to have been acquired through funds obtained from the general public under false pretenses of lucrative incentives and commissions on investments.

According to an official statement released by the ED, intensive search operations were conducted from June 10 to June 12 at lockers held in NAMCO Bank, HDFC Bank, and State Bank of India. During these operations, the ED recovered assets worth Rs. 3.33 crore, registered under the names of the company's promoters and their associates implicated in the financial irregularities.

Earlier searches conducted by the ED on March 8 and March 11 at 11 locations in Nashik and Thane led to the restraint and provisional attachment of movable and immovable properties amounting to Rs. 84.24 crore.

The ED's investigation was triggered by multiple FIRs filed across Maharashtra, including Parbhani and Nashik, against M/s KBC Multi Trade Private Ltd., and its key figures, Bhausaheb Chhabu Chavan, Smt. Arati Bhausaheb Chavan, and others.

The investigation uncovered that the Chavan family and principal agents of the company orchestrated a scheme through M/s KBC Multi Trade Private Limited and M/s KBC Club and Resorts Private Limited. This Multilevel Marketing (MLM) scheme promised high returns on investments but allegedly defrauded investors of over Rs. 200 crore.