On March 3, 2023, the Directorate of Enforcement (ED) carried out a search and survey operation at 15 locations in Nagpur and Mumbai as part of an ongoing PMLA 2002 investigation pertaining to the investment fraud of Pankaj Mehadia and others. The primary suspects in this scam, Pankaj Mehadia, Lokesh Jain, and Karthik Jain, as well as the workplace and home locations of the principal beneficiaries, were all searched.
Based on the predicate FIR filed at the Sitabuldi Police Station in Nagpur against Pankaj Nandlal Mehadiya, Lokesh Santosh Jain, Kartik Santosh Jain, Balmukund Lalchand Keyal, and Premlata Nandlal Mehadiya in a scam that cost investors millions of dollars, the ED launched a PMLA probe. An inquiry by the PMLA found that Pankaj Nandlal Mehadia and his cohorts operated a Ponzi scam and deceived several investors by guaranteeing a 12% yield after TDS on their investments from 2004 to 2017.
The accused ran a Ponzi scheme from 2005 to 2016 with the malicious intent of defrauding and stealing the investors’ money. They assured investors of returns in order to gain their trust and persuade them to invest larger sums in the associated businesses/companies, but they never returned the investors’ money. More than Rs 150 crore worth of transactions have been made in bank accounts in an effort to shift the money and give the transactions the appearance of validity. Most of these transactions are likely just accommodation entries rather than being supported by actual commercial activities.
On 03/03/2023, ED conducted searches and surveys at 15 sites in Nagpur and Mumbai. During the searches, they found and seized digital devices, different incriminating papers, and gold and diamond jewellery valued at Rs. 5.51 crore and Rs. 1.21 crore. The matter is still being investigated further.
