Mumbai, Jan 28 (IANS): The Directorate of Enforcement (ED), Mumbai, has filed a Prosecution Complaint (PC) against Amber Dalal and others in connection with a large-scale investment fraud involving his firm, M/s Ritz Consultancy Services.

The complaint was filed under the Prevention of Money Laundering Act (PMLA), 2002, before the Special Court (PMLA) in Mumbai.

The ED stated that the PC, filed on January 23, was taken cognizance of by the court on January 24.

The investigation was initiated based on an FIR registered by Oshiwara Police Station, Mumbai, on March 25, 2024, which was later transferred to the Economic Offences Wing (EOW), Mumbai.

According to the ED, Amber Dalal collected investments from over 2,000 individuals by promising returns of 1.5 per cent to 1.8 per cent per month through commodity trading. However, instead of honouring these promises, Dalal diverted the funds for personal and unrelated uses. The investigation revealed the fraud amounted to approximately Rs 564 crore.

The ED alleged that Amber Dalal operated a Ponzi scheme, using new investments to pay returns to earlier investors. The funds collected were routed through multiple bank accounts belonging to Dalal, his family members, and associates to disguise their origin.

“A significant portion of the funds was used to purchase properties in the names of family members, while Rs 15.04 crore was diverted to a close acquaintance, Rashmi Prasad,” the ED said.

As part of the investigation, the ED provisionally attached assets worth approximately Rs 67 crore. These include immovable properties, bank balances, DEMAT holdings, insurance policies, and investments in alternative investment funds. One of the attached properties is located in Dubai, United Arab Emirates.

Amber Dalal was arrested under the provisions of the PMLA, and remains in judicial custody. The ED has sought the confiscation of the attached assets and continues its efforts to recover the defrauded funds and identify the roles of other individuals involved in the scheme.