Mobile app fraud: ED searches 14 premises in Mumbai, Ahmedabad and Surat

Mobile app fraud: ED searches 14 premises in Mumbai, Ahmedabad and Surat

The premises searched in connection with the alleged siphoning of a huge sum of public money by Chinese nationals belong to two firms, including a BSE-listed company.

Somendra SharmaUpdated: Friday, March 03, 2023, 10:59 PM IST
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Mobile app fraud: ED searches 14 premises in Mumbai, Ahmedabad and Surat | Representative Image

The Enforcement Directorate (ED) carried out searches at 14 premises in Mumbai, Ahmedabad and Surat SEZ (Special Economic Zone) as part of a probe into a money laundering case linked to a mobile phone app fraud.

The premises searched in connection with the alleged siphoning of a huge sum of public money by Chinese nationals belong to two firms, including a BSE-listed company. Cases have been registered in several states in connection with the fraud that led to many people losing their hard-earned money.

The agency, during the searches, seized Rs 25 lakh in cash and valuables including diamonds, gem stones and other precious metals worth Rs 10 crore that were allegedly shown in the books of account to be worth thousands of crores of rupees, the ED said on Friday. The searches also led to the seizure of digital devices and documents allegedly related to fake instances of import-export, agency sources said.

Three persons have so far been arrested in the case and a number of non-bailable warrants have been issued.

“ED conducted searches at 14 premises pertaining to Sagar Diamond Limited, a BSE listed company, RHC Global Exports Limited, their director Vaibhav Dipak Shah and their associates in Surat SEZ, Ahmedabad, and Mumbai in the Power Bank App fraud case,” the ED said on Friday.

The FPJ attempted to reach the two firms on their phone numbers mentioned on their sites for their comments over ED’s allegations but could not speak with the officials.

The ED conducted the investigation under the Prevention of Money Laundering Act, 2002, based on a first information report filed by the Delhi Police in the Power Bank App fraud.

“Thousands of people have been cheated through this app managed by Chinese nationals in connivance with their associates in India, which includes Vaibhav Dipak Shah and Sagar Diamond Ltd,” ED said.

“A number of manufacturing units of the entities at Surat SEZ were found to be involved in exorbitant overvaluation of import-export of diamonds, gem stones and other precious metals and siphoning of funds abroad in the garb of bogus imports,” the official said.

“During the search, stocks to the tune of thousands of crores of rupees shown in the books of account were found to be highly overvalued and had an actual value of Rs 10 crore approximately,” the official said. “Synthetic rubies of insignificant value was shown as precious gems,” ED said.

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