Daijiworld Media Network - New Delhi
New Delhi, Feb 4: The Enforcement Directorate (ED) has moved to clamp down on a massive alleged Ponzi scam in Punjab by provisionally attaching four bank accounts holding around Rs 4.07 crore belonging to Crown Credit Cooperative Society Limited. The action was taken by the agency’s Jalandhar Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002, officials said.
The attachment order was issued on February 4, 2026, following an investigation triggered by multiple FIRs lodged by the Punjab Police. The cases name the cooperative society, its President-cum-Managing Director Jagjeet Singh, Vice President Gurmeet Kaur, and several associates as accused.
According to the ED, the accused allegedly cheated thousands of people by persuading them to invest their savings with promises of exceptionally high returns and rapid doubling of money. The FIRs cite charges including criminal breach of trust, cheating, and criminal conspiracy.
Investigators found that depositors were lured through misleading claims and false assurances of lucrative profits. Instead of being invested in genuine business activities, the money collected was allegedly siphoned off for the personal use of the accused and to make payouts to earlier investors — a pattern typical of Ponzi schemes. This recycling of funds created a false impression of profitability, drawing in more victims and dramatically expanding the scale of the fraud.
The ED stated that deposits from investors across Punjab were funneled into four specific bank accounts held in the name of Crown Credit Cooperative Society Limited. These accounts have now been frozen to stop further diversion of funds and to secure whatever money remains for possible recovery and restitution to affected depositors.
The agency’s investigation is still underway, with officials working to trace the complete money trail, identify other beneficiaries, and locate additional assets allegedly acquired using the proceeds of the crime.
Authorities also flagged that such cooperative society–based scams have become increasingly common in Punjab in recent years. By exploiting public trust in local financial institutions and targeting middle- and lower-income families with unrealistic return promises, these schemes often leave widespread financial hardship in their wake when they inevitably collapse.