On 27.06.2023, the Directorate of Enforcement (ED) conducted search operations in Bengaluru/Mandya (Karnataka) at 05 sites belonging to M/s Hindustan Infracon India Ltd and linked people in a Ponzi Scheme fraud case under the terms of the Prevention of Money Laundering Act, 2002 (PMLA).
Previously, the ED had recorded a case of money laundering based on an FIR registered by the Vijayanagar Police Station in Bengaluru City under various sections of the IPC against M/s Hindustan Infracon India Ltd and its promoters/directors for defrauding investors/the general public to the tune of Rs. 191.54 Crore.
The ED probe found that the promoters/directors of M/s Hindustan Infracon India Ltd enticed prospective investors by providing high-interest rates on various investment programmes. However, the aforementioned firm failed to repay the deposit and interest owed to the investors, defrauding them. The organisation has received around Rs. 389 crore from approximately 7.18 lakh investors. However, the organisation failed to repay the amount of Rs. 199 Crore (estimated) to the investors, defrauding them of their hard-earned money.
The searches resulted in the recovery of damning papers and cash transaction records. The diversion of criminal funds into the acquisition of numerous immovable assets was discovered, and the corresponding paperwork was confiscated. More research is being conducted.
