The Enforcement Directorate (ED) has carried out raids at a number of areas in Maharashtra linked to a Multi-level Advertising (MLM) firm, KBC Multitrade, which is accused of duping a number of individuals to the tune of greater than 200 crore, the officers stated on Thursday.
The search operations underneath the Prevention of Cash Laundering Act (PMLA) on March 8 and 11 have been held on the official and residential premises of the corporate in Nashik and Thane in Maharashtra.
Promoters of KBC Multitrade Non-public Restricted, Bapu Chhabu Chavan, Bhausaheb Chhabu Chavan, and Arti Bhausaheb Chavan, together with the corporate’s principal brokers, are accused of hatching a conspiracy to attract individuals by the multi-level advertising and marketing scheme, promising profitable returns.
They collected an funding of over Rs 200 crore from the general public, who have been subscribed as members on cost of charges underneath numerous packages and schemes.
The collected cash from the general public was utilized by the accused to purchase immovable and movable belongings within the type of gold jewelry, funding in shares, and so on. Properties have been maintained each in their very own names and within the names of their relations appearing as benamis, the central probe company stated.
Throughout the raid, paperwork associated to twenty properties valued at Rs 62 crore have been seized by the Nagpur unit of the Enforcement Directorate.
The officers additionally ordered a restraint on a checking account having Rs 16.6 crore deposited, demat account balances amounting to Rs 44.61 lakh (used for inventory buying and selling), and publish workplace financial savings value Rs 5.56 lakh.
The probe company additionally seized Rs 30.75 lakh value of gold and diamond jewelry.
One financial institution locker was additionally raided, and 4 lockers believed to have the collected cash have additionally been sealed.
The Enforcement Directorate initiated an investigation primarily based on a number of FIRs registered in numerous districts throughout Maharashtra in opposition to the corporate and its promoters and administrators.
Additional investigation is in progress.
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