india

Updated: Aug 17, 2019 22:55 IST

The Enforcement Directorate (ED) has attached assets worth Rs 261 crore including residential plots and agricultural lands belonging to Future Maker Life Care Pvt Ltd, its two directors, their family members and associates for allegedly running a ponzi scheme case involving a fraud of around Rs 3,000 crore.

The properties attached are spread across Hisar, Adampur, Kulam, Delhi and Chandigarh.

The ED’s action under the provisions of Prevention of Money Laundering Act, 2002 (PMLA) came on the basis of first information reports (FIRs) registered by the Telangana police against the company and its directors – Radheshyam and Bansilal -- in March 2019, the agency said.

Radheshyam was arrested in Hyderabad last September .

According to the Cyberabad Economic Offences wing authorities, Radhe Shyam is still in judicial remand, as he was taken from one state to another state in connection with the case and others could get bail. “We are waiting for the Forensic Sciences Lab report on the offences committed by the accused and we are hoping to get the same in four or five days. Once we get that, we shall file the charge sheet in court,” a senior official familiar with the case said.

FIRs were filed for cheating the common public by propagating a false theme of ‘a life turning opportunity to earn income Rs 20,000 to Rs 10,00,000 per month’ and “inviting innocent public” to become members of their ponzi pyramid scheme in the guise of direct selling multi-level marketing by selling worthless products such as suit length and edible products, it said.

“They extensively advertised their commission model in which very high commissions were paid for enrolment of new members in the down links of the pyramid,” it said in a statement.

Investigation under the provisions of PMLA revealed that funds were fraudulently collected from the subscribers as deposit towards membership in the scheme through a chain of agents spread across India. These deposits collected through the schemes were illegally diverted into the personal accounts of the directors, their family members and other associates, it said.

Funds were also diverted to other shell companies incorporated by the two directors, it said.

“Primary objective of the promoters of the company is to lure the gullible public with promises of huge commissions and with dreams of becoming rich without much effort quickly. They also cheated the public by falsely claiming that their fraud pyramid scheme was a legitimate direct selling network scheme by introducing sub-standard products like cheap suit lengths and supplements,” it said.

Investigations conducted so far revealed that the accused have fraudulently collected around Rs 2,950 crore from lakhs of members and the same has been identified as the proceeds of crime.

So far 16 immovable properties purchased at a cost of Rs 9.08 crore from the proceeds of crime and along with bank balances amounting to Rs 252 crore lying in 34 accounts maintained in the name of company, its subsidiaries, two directors, their family members and other associates have been identified and attached under the PMLA. Further investigation is under progress, the ED said.