Mumbai: The Enforcement Directorate (ED) conducted search operations at various locations in Mumbai and Kolkata as part of an ongoing investigation into alleged investment fraud involving Chartered Accountant and investment consultant Amber Rameshchandra Dalal under the Prevention of Money Laundering Act (PMLA), 2002.
The search operations were conducted on September 3 which resulted in the freezing of movable assets, including cash, bank funds, and Demat account holdings amounting to Rs 2 Crore. Various incriminating documents, including property documents related to immovable property in Dubai, as well as digital devices, were found and seized, the Financial probe agency said on Thursday.
This is the second search action taken by the financial probe agency in the case against Dalal. So far, the agency has frozen properties worth Rs 39 Crore.ED initiated investigation on the basis of F.I.R. registered by Mumbai Police against Amber Dalal, proprietor of M/s Ritz Consultancy Services.
Amber Dalal is accused of taking money from investors through a suspected Ponzi scheme by promising high returns and then absconded with their money after giving initial returns. It has been gathered that the amount of money raised by Amber Dalal is more than Rs 600 Crore from 1300 investors including Bollywood artists, businessmen, lawyers, chartered accountants, and many senior citizens. Dalal was arrested by the Economic Offenses Wing (EOW) of the Mumbai Police and is currently in judicial custody.
The ED investigation revealed that Amber Dalal raised money from investors on the pretext that he was investing their funds in nine commodities (gold, silver, crude oil, natural gas, zinc, lead, nickel, copper, aluminum) and trading in them,ensuring the capital is safe and promising an annual return of 18%- 22% to his investors. Using a similar modus operandi, Dalal also raised money from investors in the UAE and the USA.
The search operations unveiled a network of entry operators who channelized the cash raised by Amber Dalal by providing accommodation entries in his bank account. It is also found that payments received from new investment were being utilized to pay out the monthly returns to the old investors.
It has further been revealed that Dalal infused the money received from duped investors into the accounts of his associates which was further used for trading in the stock market. These associates have utilized the funds given by Amber Dalal to acquire properties in India and abroad. Four such immovable properties in India including one in Dubai have been identified, ED stated.
