ED arrests two in ₹1,417 crore Unique Exports investment fraud in Tamil Nadu
Synopsis
The ED has arrested two men behind an alleged ₹1,417.86 crore investment fraud in Tamil Nadu — one of the state's largest recorded deposit scams — where promises of agricultural export returns masked a scheme that allegedly routed funds through over 100 accounts, booked fictitious salaries worth ₹390.90 crore, and affected nearly 36,000 investors.
Key Takeaways
The Enforcement Directorate arrested S.
Muthuselvam on 29 September under the PMLA in connection with the Unique Exports fraud case.
The alleged fraud collected approximately ₹1,417.86 crore from 35,759 investors , promising returns from agricultural exports. ₹719 crore was deposited in bank accounts linked to Unique Exports; funds were allegedly routed through more than 100 accounts .
Banking records showed ₹390.90 crore in purported salary payments despite only four employees , and ₹79.56 crore in fictitious commodity purchases.
Muthuselvam allegedly invested ₹42.10 lakh and received ₹12.72 crore in returns, commissions, and referral payments.
A special PMLA court remanded both accused to 15 days' judicial custody ; investigation is ongoing.
The Enforcement Directorate (ED) has arrested S. Naveen Kumar and S. Muthuselvam in connection with an alleged investment fraud linked to Unique Exports and associated entities, which the agency says collected approximately ₹1,417.86 crore from 35,759 investors. The arrests, made on 29 September under Section 19 of the Prevention of Money Laundering Act (PMLA), mark a significant escalation in one of Tamil Nadu's largest recorded deposit fraud investigations.
Arrests and Judicial Custody
A special PMLA court remanded both accused to 15 days' judicial custody following their arrest, according to the agency. The investigation was triggered by a First Information Report (FIR) registered by the District Crime Branch in Erode under provisions of the Indian Penal Code and the Tamil Nadu Protection of Interests of Depositors Act. The ED subsequently took over the money laundering angle.
How the Alleged Fraud Operated
According to investigators, the accused and their associates ran schemes through Unique Exports, East Valley Agro Firms, and related entities, luring investors with promises of high returns from agricultural exports. However, the ED alleges these firms did not undertake any substantial export activity and continued collecting money under the guise of agricultural business profits.
Of the total funds raised, ₹719 crore was reportedly deposited in bank accounts linked to Unique Exports alone. The money was allegedly routed through more than 100 accounts belonging to the firm, associated concerns, family members, and close associates — a network investigators say was designed to obscure the trail of investor funds.
Financial Irregularities Uncovered
Banking records examined by the ED revealed a series of anomalies that investigators allege were used to disguise investor money as legitimate business expenditure. Records purportedly showed ₹390.90 crore booked as salary payments — despite only four people being employed by the concern. An additional ₹79.56 crore was recorded as expenditure on onions and other commodities without any actual purchases taking place, according to the agency.
Naveen Kumar, the proprietor of Unique Exports, allegedly devised the investment schemes, controlled banking operations, and directed the movement of investor funds. Muthuselvam allegedly assisted in operating the schemes, recruiting investors, and channelling funds through personal accounts and connected businesses. Against an investment of approximately ₹42.10 lakh, he allegedly received ₹12.72 crore in returns, commissions, referral benefits, and other payments, according to the ED.
Earlier Searches and Background
The ED had previously searched nine premises linked to Naveen Kumar and his associates on 16 and 17 June, indicating the investigation had been building for several months before the arrests. The current case adds to a pattern of ED action in Tamil Nadu: the agency arrested former minister V. Senthil Balaji on 14 June 2023 in a money laundering probe tied to an alleged cash-for-jobs scam involving state transport corporations, and arrested Jaffer Sadiq on 26 June 2024 and Mohammed Saleem on 12 August 2024 in a separate investigation linked to alleged international drug trafficking.
Investigation Continues
The ED has confirmed that further investigation into the Unique Exports case is ongoing. With tens of thousands of investors potentially affected and funds allegedly dispersed across an extensive network of accounts, the scope of asset recovery and the identification of additional accused remain active threads in the probe. The outcome is being closely watched by investor protection advocates and regulatory observers across Tamil Nadu.
Point of View
000 investors, many of them likely from rural Tamil Nadu where farm-linked returns carry intuitive appeal. The ₹390.90 crore in fictitious salary payments across a four-person firm is staggering and suggests the paper trail was designed to survive a cursory audit, not a forensic one. The broader question this case raises is one of regulatory lag: deposit-taking schemes of this scale rarely collapse without years of visible red flags, and the gap between the Erode FIR and the ED's PMLA action warrants scrutiny. With over ₹1,400 crore allegedly dissipated across a web of 100-plus accounts, investor recovery will be a long and uncertain process.
NationPress
1 Oct 2026
Frequently Asked Questions
What is the Unique Exports investment fraud case?
It is an alleged Ponzi-style investment scheme in Tamil Nadu where Unique Exports, East Valley Agro Firms, and related entities reportedly collected ₹1,417.86 crore from 35,759 investors by promising high returns from agricultural exports. The ED alleges the firms conducted no substantial export activity and used investor funds to simulate business expenditure.
Who has been arrested by the ED in this case?
The ED arrested S. Naveen Kumar, the proprietor of Unique Exports, and S. Muthuselvam, an alleged associate, on 29 September under Section 19 of the Prevention of Money Laundering Act. A special PMLA court remanded both to 15 days' judicial custody.
How were investor funds allegedly concealed?
According to the ED, funds were routed through more than 100 bank accounts linked to the firm, family members, and associates. Banking records allegedly showed ₹390.90 crore booked as salary payments despite only four employees, and ₹79.56 crore as commodity purchases that never took place — moves the agency says were designed to disguise investor money as business expenditure.
How much did Muthuselvam allegedly receive from the scheme?
The ED alleges that Muthuselvam invested approximately ₹42.10 lakh and received ₹12.72 crore in returns, commissions, referral benefits, and other payments. He allegedly helped recruit investors and channel funds through personal accounts and connected businesses.
What happens next in the investigation?
The ED has confirmed that the investigation is ongoing. Earlier searches were conducted at nine premises linked to Naveen Kumar in June, and further action — including potential additional arrests and asset recovery — is expected as investigators continue tracing the movement of funds across the network of accounts.
