ED auctions Falcon fraud aircraft for ₹3 crore in ₹792 crore Ponzi case
Synopsis
In a first-of-its-kind move, the ED auctioned a private jet seized from the Falcon Group — accused of running a ₹792 crore Ponzi scheme in Hyderabad — for ₹3 crore. The proceeds will go toward repaying defrauded investors, setting a notable precedent for PMLA asset liquidation in financial fraud cases.
Key Takeaways
The ED Hyderabad Zonal Office auctioned a Hawker 800A aircraft on 1 July 2025 for ₹3 crore via MSTC Limited .
The aircraft was seized at Rajiv Gandhi International Airport, Hyderabad on 7 March 2025 in a PMLA case against Amardeep Kumar and Capital Protection Force Pvt.
Ltd. (Falcon Group) .
The alleged scam involved a bogus invoice discounting scheme that defrauded investors of approximately ₹792 crore .
Arrests include Sandeep Kumar , Sharad Chandra Toshniwal , and Aryan Singh Chhabra ; a prosecution complaint was filed on 29 September 2025 .
The ₹3 crore auction proceeds will be used for investor restitution, subject to special court approval.
The Directorate of Enforcement (ED)'s Hyderabad Zonal Office has auctioned a Hawker 800A aircraft — seized in connection with an alleged ₹792 crore invoice discounting scam — for ₹3 crore, in what the agency described as a first-of-its-kind asset disposal action under the Prevention of Money Laundering Act (PMLA), 2002. The sale, conducted through MSTC Limited on 1 July 2025, marks a significant step toward restitution for investors allegedly defrauded by Amardeep Kumar and his firm, Capital Protection Force Pvt. Ltd., also known as the Falcon Group.
Background: The Falcon Invoice Discounting Scam
The ED initiated a PMLA case against Capital Protection Force Pvt. Ltd., a Hyderabad-based company, and its promoters after the Economic Offences Wing, Cyberabad, registered three FIRs against the Falcon Group and its CMD Amardeep Kumar. Investigators allege that Kumar and associates ran a bogus invoice discounting scheme, collecting funds from a large number of investors on the promise of higher returns, while no actual invoice discounting business was ever conducted. The alleged fraud is estimated at approximately ₹792 crore.
How the Aircraft Was Seized and Auctioned
The Hawker 800A was seized at Rajiv Gandhi International Airport, Hyderabad, during a search operation on 7 March 2025. Following the seizure, the ED filed an original application before the Adjudicating Authority, PMLA, which confirmed the attachment through an order dated 18 August 2025. The ED subsequently moved an application under Rule 4(2) of the Prevention of Money Laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority) Rules, 2013, seeking permission to sell the aircraft. The Adjudicating Authority granted permission on 20 November 2025, paving the way for the auction.
Arrests and Prosecution
Several individuals connected to the Falcon Group have been arrested by the ED, including Sandeep Kumar, brother of Amardeep Kumar; Sharad Chandra Toshniwal, a Chartered Accountant associated with the group; and Aryan Singh Chhabra, CEO of Falcon Invoice Discounting. A prosecution complaint was filed before the jurisdictional court on 29 September 2025. The ED has stated that further investigation is ongoing.
What Happens to the ₹3 Crore Proceeds
The ₹3 crore sale consideration received from the purchaser will be directed toward restitution for genuine investors, subject to the approval of the special court under the provisions of the PMLA, 2002. The ED reiterated its commitment to identifying, tracing, attaching, and confiscating proceeds of crime, prosecuting accused persons, and facilitating lawful restitution to victims. This action is being closely watched as a precedent for future asset liquidations in financial fraud cases.
Point of View
Often dressed in the language of legitimate trade finance, have repeatedly served as Ponzi vehicles. The ED's decision to auction the aircraft and channel proceeds toward restitution is procedurally sound, but ₹3 crore against an alleged ₹792 crore fraud is a fraction of what victims lost. The real measure of PMLA's effectiveness is not the seizure headline but the eventual recovery ratio — a number that, in most Indian financial fraud cases, remains dismally low. Faster adjudication and a more aggressive asset tracing pipeline would better serve the law's restitution mandate.
NationPress
3 Jul 2026
Frequently Asked Questions
What is the Falcon Group invoice discounting scam?
The Falcon Group scam refers to an alleged ₹792 crore Ponzi scheme run by Amardeep Kumar and Capital Protection Force Pvt. Ltd., a Hyderabad-based company. Investors were allegedly lured with promises of high returns under the guise of an invoice discounting scheme, though no actual invoice discounting business was reportedly conducted.
Why did the ED auction the seized aircraft?
The ED auctioned the Hawker 800A aircraft to recover proceeds of crime and direct the funds toward restitution for defrauded investors under the PMLA, 2002. The Adjudicating Authority granted permission for the sale on 20 November 2025, following the attachment confirmation in August 2025.
How much did the aircraft sell for, and who gets the money?
The aircraft was sold for ₹3 crore through MSTC Limited on 1 July 2025. The proceeds are to be used for restitution to genuine investors in the Falcon Group case, subject to the approval of the special court under PMLA provisions.
Who has been arrested in the Falcon Group case?
The ED has arrested Sandeep Kumar (brother of accused CMD Amardeep Kumar), Sharad Chandra Toshniwal (Chartered Accountant), and Aryan Singh Chhabra (CEO of Falcon Invoice Discounting). A prosecution complaint was filed before the jurisdictional court on 29 September 2025.
What is the significance of this aircraft auction?
The ED described this as a first-of-its-kind action — auctioning a seized aircraft under PMLA proceedings to fund investor restitution. It sets a procedural precedent for liquidating high-value movable assets in financial fraud cases rather than leaving them idle during prolonged legal proceedings.
