Mumbai: Firm running ponzi investment schemes under ED scanner

The Enforcement Directorate's (ED) money-laundering probe against a firm allegedly running fraudulent ponzi investment schemes in several states revealed that it allegedly duped investors by promising them higher returns on their investments but defaulted on the payment of the returns on their maturity.

The firm allegedly pressurised the same investors thereafter to invest further in similar schemes of its related firms if they wanted to recover the returns on their original investments, ED sources said.

The accused firm had allegedly falsely promised higher returns on schemes including fixed deposits, an ED source said. ED’s probe revealed that the proceeds of crime was allegedly diverted and invested in various immovable properties purchased across India including states like Punjab, Madhya Pradesh and Uttar Pradesh in the names of several associated firms, agency sources said.

ED has so far provisionally attached 87 properties worth Rs4.15 crore of NGHI Developers India Ltd and its other group companies in connection with its probe into the ponzi scheme. The scheme affected thousands of investors across several states.

“The accused firm had generated proceeds of crime in the form of fixed deposits, among others, falsely promising high returns. After the maturity of the scheme, the accused persons defaulted in returning the money and also pressurised the investors to invest funds in their new companies,” the source said.

ED’s probe is based upon a court’s order. Besides, several cases are registered with the police in several states. The probe revealed that the accused persons had set up/incorporated multiple firms that are under the scanner of the agency to verify their role in the case.