HYDERABAD: The Enforcement Directorate (ED) on Tuesday attached Rs 278 crore worth properties of eBiz.com, a Noida-based multi-level marketing company, and its promoters. ED took up the probe under Prevention of Money Laundering Act based on FIRs filed by Cyberabad police , who busted a huge fraud in August after arresting director of the group Pawan Malhan and his son Hitikh Malhan.

According to ED, the attached assets include residential plots, apartments, farmhouses and commercial buildings in Delhi and Noida. ED also attached bank accounts belonging to Pawan and wife Anitha Malhan, director of eBiz.com Private Ltd, and that of family members and other associates. "ED has so far identified and attached 29 immovable properties purchased at 34.6 crore. It also attached bank balances of 242 crore found in 124 accounts maintained in the name of the company, the two directors and their family members and associates," sources said.

ED found that funds were illegally diverted into the personal accounts of the directors, their family members and associates under various heads, including dividends, high salaries and incentives. In a series of transactions, the money was invested in movable and immovable properties to conceal them, sources said.

The firm allegedly cheated more than 17 lakh people across the country and siphoned off more than 5,000 crore. The key accused - Pawan and Hitikh - are currently in the custody of Telangana police.

ED alleged the purpose of introducing substandard, overpriced products was only to camouflage their pyramid scheme as a direct selling product company. "The directors lured more depositors by going for extensive advertisements and giving high commissions to existing members," it said.

The firm started operations by selling holiday packages and other products. Later, it began selling education packages, mostly targeting students. The firm's operations spread across Hyderabad, Bengaluru, Chennai and in UP, Maharashtra, Goa, J&K and Delhi.

