Mumbai, March 13: The Enforcement Directorate (ED) has arrested two persons for allegedly cheating investors in Gujarat and Maharashtra of around Rs 300 crore through digital investment schemes and laundering the proceeds. A court has remanded the accused Sudhir Kotadiya, 33, and his cousin, Umang Kotadiya, 27, from Amreli to ED custody till March 20.
Case registered on Thane FIR
The money laundering case was registered based on an FIR initially filed at the Vartak Nagar police station in Thane and later transferred to the Economic Offences Wing (EOW).
Investigators allege the accused operated a large-scale digital investment scheme through several entities, including Qfonn App Limited, Qfon Connect India LLP, Qfon Entertainment Pvt Ltd, and Qfon Ajobman India LLP, among other related firms.
Accused allegedly fled abroad
ED prosecutor Arvind Aghav, seeking their custody, told the court that the accused had been absconding, prompting authorities to issue a look-out circular.
He said the duo fled to Dubai and later re-entered India via Nepal to evade legal action before being traced and arrested in Gujarat.
Investors lured with high returns
According to investigators, the accused lured people to invest by promising monthly returns ranging from 2% to 10.5%, claiming the income would be generated through online advertisement viewing and app-based digital activities.
The probe found that funds from new investors were used to pay returns to earlier investors, while a significant portion was allegedly siphoned off.
One investor who had put in Rs 183 crore provided details of about 60 companies, entities and individuals whose bank accounts were allegedly used to collect nearly Rs 55 crore on the instructions of the accused.
ED alleges Ponzi scheme operation
The ED claims Sudhir Kotadiya was the mastermind behind the Qfonn app-based Ponzi scheme and held 25% shares in Qfonn App Limited, with another 25% held by his wife, Ranjanben Kotadiya, while the remaining shares were with other family members.
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Umang Kotadiya allegedly handled operations, serving as director or partner in multiple Qfon group entities and acting as an authorised signatory for several bank accounts linked to the scheme.
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