Approximately Rs 37 crore in bank and demat account deposits, along with cash, have been seized by the Enforcement Directorate (ED) as part of a money laundering investigation against a Mumbai-based financial consultant and his company. They are accused of defrauding investors of Rs 600 crore through a Ponzi scheme. The ED carried out raids on June 21 in Mumbai against Amber Dalal and his company Ritz Consultancy Services.
The money laundering case originated from a Mumbai Police First Information Report (FIR) that accused the Chartered Accountant and his company of luring investors with a suspected Ponzi scheme promising high returns. Dalal allegedly absconded after providing initial returns and is said to have raised over Rs 600 crore from 1,300 investors. He is currently in judicial custody after being arrested by the EOW, Mumbai Police.
The ED alleges that Dalal collected funds from investors, claiming to invest in commodities and promising annual returns of 18-22%. He is also accused of raising money from investors in the UAE and USA using the same tactics. The investigation revealed a network of stockbrokers and investment advisors who brought in clients in exchange for commission. Funds received from new investments were allegedly used to pay monthly returns to old investors.
The ED claims that Dalal diverted funds received in Ritz’s account to personal accounts, which were then transferred to family members’ accounts and used to acquire assets. It is alleged that he diverted about Rs 51 crore to his personal accounts, using the funds to acquire assets in India and abroad. The ED has identified eight immovable properties in India and two abroad that were acquired using these funds.
According to the ED, apart from investments made through banking channels, cash investments were made and recorded as accommodation entries in connivance with Mumbai-based jewellers. Returns on these cash-based investments were allegedly given to investors in India and abroad, including the UK and UAE, through hawala operators.
During the searches, the ED froze approximately Rs 37 crore in cash, bank deposits, and demat account holdings. They also seized various incriminating documents and digital devices.