Daijiworld Media Network - Chennai
Chennai, Jun 17: The Directorate of Enforcement (ED) on Wednesday said it carried out searches at eight locations across Tamil Nadu in connection with a money laundering investigation linked to an alleged Ponzi scheme involving M/s Unique Exports and its associated entities.
The raids were conducted on Tuesday by the ED's Chennai Zonal Office at business and residential premises in Chennai, Erode, Coimbatore and Krishnagiri districts under provisions of the Prevention of Money Laundering Act (PMLA).
The investigation stems from multiple FIRs registered by the Tamil Nadu and Karnataka police under various sections of the Indian Penal Code.
According to the ED, the alleged fraudulent investment scheme was orchestrated by S. Naveen Kumar along with several associates, including Jeevalatha, K. Prabhu, K. Mathan Kumar, Muthuselvam, J. Franklin and others.
Investigators said the accused allegedly persuaded hundreds of people to invest money by promising exceptionally high returns through businesses related to the export of agricultural commodities such as onions, potatoes and other produce.
Investors were reportedly offered schemes that promised returns exceeding 200 per cent within a short period. They were also encouraged to recruit friends and family members in exchange for lucrative referral commissions.
The ED said multiple companies were allegedly created to collect funds from investors and channel the money through various bank accounts to conceal the source of the proceeds.
The entities under scrutiny include M/s Unique Exports, M/s East Valley Agro Farms, M/s Unique Rubber Industries, M/s Unique International Group, M/s Sara Exports, M/s Indo Russian Rare Earth Metals and M/s Indo Russian Business Associates.
According to the investigation conducted so far, nearly Rs 400 crore is suspected to have been fraudulently collected from members of the public.
The agency said the alleged proceeds of crime were diverted into several avenues, including real estate purchases, fixed deposits, overseas transactions and transfers to associates and related companies.
During the search operations, officials seized laptops, mobile phones, pen drives and other digital storage devices.
The agency also recovered several documents that are believed to contain evidence related to the alleged Ponzi scheme and investments in immovable properties.
Additionally, two luxury vehicles were seized during the operation.
The Enforcement Directorate said further investigation into the case is ongoing.