Ponzi scam: ED attaches assets worth ₹36.21 cr in Amber Dalal case

MUMBAI: The Mumbai unit of the Enforcement Directorate (ED) provisionally attached assets worth ₹36.21 crore as part of its money-laundering probe into a case against Amber Dalal, the proprietor of the firm M/s Ritz Consultancy Services, and others. Dalal is accused of collecting money from investors through a Ponzi scheme promising high returns and then absconding after giving initial returns.

It was alleged that the amount of money collected by him from 1,300 investors was over ₹600 crore. The assets recently attached included 10 immovable properties in Mumbai and Kolkata, and movable properties in the form of fixed deposit receipts, shares, mutual funds and investment in alternative funds. ED’s probe is based on a case filed by Mumbai police against Dalal.

ED’s investigation revealed that various individuals were working as commission agents for soliciting new clients for Dalal. The commission agents allegedly received a huge part of the investors’ funds as commission from M/s Ritz Consultancy Services, according to ED. “The agents enjoyed the commission without conducting any due diligence and enriched themselves at the expense of investors,” said an ED official.

Further investigation revealed that a man identified as Vinay Mohindar allegedly helped Dalal in parking the funds raised from the investors in foreign jurisdictions. The investors’ funds were allegedly transferred by a foreign-based entity of Dalal to the foreign-based entities of Mohindar through sham transactions.

ED had earlier arrested Dalal and submitted a prosecution complaint against him and attached assets worth ₹104.35 crore, including an immovable property in Dubai.

Dalal is currently in judicial custody.

Bank fraud case

In a separate money-laundering case related to an alleged bank fraud by M/s Sharon Bio Medicine Limited and others, the ED attached provisionally immovable assets worth around ₹9.39 crore. The attached assets included immovable assets in the form of flats in Pune. The ED had initiated its probe based on cases registered by the Central Bureau of Investigation, Mumbai, against M/s Sharon Bio- Medicine Limited and others under various sections of the Indian Penal Code and the Prevention of Corruption Act, for alleged fraud against banks by using bogus documents, causing losses of around ₹286 crore.

ED’s investigation revealed that some former directors of the firm had allegedly manipulated the stock statements and balance sheets of the company to create fictitious transactions to secure huge loans from the banks. They also allegedly set up many shell firms, to which the bank funds were diverted.