Daijiworld Media Network - New Delhi
Chennai, Oct 31: The Enforcement Directorate (ED) on Saturday provisionally attached assets worth around Rs 85.19 crore as part of its money laundering investigation into Dream Makers Global Private Limited, which allegedly lured thousands of investors with promises of high daily returns and doubling their money within 150 days, officials said.
The attachment, made under the Prevention of Money Laundering Act (PMLA), 2002, covers movable and immovable assets allegedly linked to the investment fraud.
The ED initiated its investigation based on a case registered by the Tamil Nadu Police's Economic Offences Wing.
Investigators alleged that the company collected deposits from the public through investment packages purportedly linked to software projects. Initial payments were allegedly made to attract more investors before the scheme defaulted, leaving depositors facing losses.
The investigation identified the company's late Managing Director S. Sathish Kumar, Director Gunavathy and Manager Mugunthan Nair as key figures.
According to the ED, promotional meetings and assurances of high returns were used to persuade people to invest their money.
On June 30, investigators searched eight locations in Coimbatore and Krishnagiri in Tamil Nadu, and Malappuram and Thrissur in Kerala. Documents, diaries, digital records and details of properties were seized during the searches.
The central agency alleged that funds shown as returns or commissions were used to acquire properties, vehicles and other personal assets. Investigators also identified bank accounts, fixed deposits and financial instruments linked to the accused and their associates.
The action adds to the ED's ongoing investigations in Tamil Nadu involving alleged investment fraud, cryptocurrency schemes and corruption.
In one of its recent operations, the ED's Chennai Zonal Office-II searched 11 premises in Chennai, Coimbatore and Kolkata on September 1 in connection with the Hashpe cryptocurrency fraud case. The searches were conducted under the PMLA.
Another prominent case in Tamil Nadu concerns former state minister V. Senthil Balaji and alleged cash payments for jobs in state transport undertakings.
The ED filed a charge sheet against him in August 2023 following an investigation based on three FIRs registered by the Chennai Central Crime Branch. The complaint concerned alleged money laundering linked to recruitment-related payments during his tenure as Transport Minister.
The prosecution involving Senthil Balaji and the Hashpe investigation are separate from the Dream Makers case.
In the Dream Makers case, the attachment remains provisional, with the allegations centred on the collection of investors' deposits and the alleged use of those funds to acquire assets.