New Delhi, Mar 13 (UNI) The Enforcement Directorate (ED), Mumbai Zonal Office, on Friday said that it has arrested two persons- Sudhir Dalsukhbhai Kotadiya and Umang Santibhai Kotadiya – in connection with a money laundering investigation relating to a fraudulent digital investment scheme operated through QFON App Limited and other associated entities.
The accused were produced before a Special PMLA Court in Mumbai, which remanded them to ED custody till March 20.
The ED case is based on an FIR lodged with the Vartak Nagar Police Station, Thane City, Maharashtra, under various sections of the IPC and Section 3 of the MPID Act against Sudhir Kotadiya, Jaysukh Sakhariya, Umang Kotadiya and others for allegedly operating a digital Ponzi investment scheme.
The ED investigation revealed that the accused lured innocent investors from Gujarat and Maharashtra to invest funds in the scheme by promising exorbitant returns ranging from 2-10.5pc, on the pretext of generating revenue through online advertisement viewing and application-based digital activities.
Further investigation revealed that funds collected from new investors were used to pay returns to earlier investors, while a substantial portion of the funds was siphoned off by the accused. The investor funds were routed through multiple bank accounts of firms, entities and individuals associated with the accused and were also transferred in cash through Angadiya operators. Investigation so far has revealed that proceeds of crime (POC) amounting to approximately Rs 183 crore were generated through the fraudulent scheme.
Further investigation revealed that the accused were absconding in the predicate offence as well as in the PMLA investigation and were deliberately evading the probe. It was also found that the accused had fled to Dubai and later returned to India through the Nepal route. After sustained efforts and intelligence-based tracking, the ED was able to trace and apprehend them, leading to their arrest on March 11.
Earlier, the ED had conducted search operations at multiple locations, which resulted in the recovery of incriminating documents, digital devices and financial records, along with the seizure of cash amounting to Rs 2.51 crore.
Further investigation is on.
