Hindustan Infracon India Ltd Faces PMLA Probe in Rs 199 Crore Ponzi Scheme Fraud Case
Investigation by ED revealed that the promoters and directors of Hindustan Infracon lured prospective investors by offering high interest rates on different schemes. However, the company did not return the deposit and interest to the investors.
New Delhi, July 1: The Enforcement Directorate (ED) said on Saturday that it recently carried out search operations at five locations in Bengaluru and Mandya (Karnataka) belonging to Hindustan Infracon India Ltd and related persons in a Ponzi scheme fraud case to the tune of Rs 199 crore.
The ED had lodged a case of money laundering based on an FIR registered at the Vijayanagar police station in Bengaluru under various sections of IPC against Hindustan Infracon India Ltd and its promoters and directors for cheating the investors and common public to the tune of Rs. 191.54 crore. BMC COVID-19 Centres Scam: IAS Officer Sanjeev Jaiswal Appears Before ED for Questioning in Mumbai (Watch Video).
Investigation by ED revealed that the promoters and directors of Hindustan Infracon lured prospective investors by offering high interest rates on different schemes. However, the company did not return the deposit and interest to the investors.
"The company collected approx Rs 389 crore from about 7.18 lakh investors. However, it failed to return Rs 199 crore to the investors and thus cheated them of their hard-earned money," said an ED official. ED Arrests IRS Officer in Money Laundering Case.
The search operations resulted in the seizure of incriminating documents and records of cash transactions. Use of proceeds of crime to purchase various immovable properties was detected and the related documents were seized.
(The above story first appeared on LatestLY on Jul 01, 2023 07:42 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).