ED Apprehends Individual for Money Laundering Linked to Bihar Ponzi Scheme
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Synopsis
The Enforcement Directorate has arrested Jawahar Lal Shah in connection with a Ponzi scheme in Bihar, under the Prevention of Money Laundering Act. This operation revealed Shah's involvement in fraudulent companies that misled investors and misappropriated funds.
Key Takeaways
- Jawahar Lal Shah arrested for money laundering.
- Investigation initiated by the Enforcement Directorate.
- Shah formed multiple companies promising high returns.
- Investors lost substantial amounts due to failed schemes.
- Ongoing investigations continue to uncover more details.
Patna, January 23 (NationPress) The Enforcement Directorate (ED) from the Patna Zonal Office has apprehended Jawahar Lal Shah under the stipulations of the Prevention of Money Laundering Act (PMLA), 2002, in relation to a Ponzi scheme, as confirmed by an official.
Shah was subsequently presented before the Special PMLA Court in Patna, where he was placed in judicial custody, as reported on Wednesday.
The ED's investigation commenced following an FIR filed by the Bihar Police under sections of the IPC, 1860, against Mahua JLG Development Cooperative Society Ltd, Jawahar Lal Shah, and several others.
Findings from the ED’s inquiry disclosed that Shah, in collusion with partners, established multiple entities including Mahua Joint Liability Group Dairy Products and Agro Industries Ltd, Mahua Joint Liability Group Development Cooperative Society Ltd, and Mahua Gavy Prasankaran Swavlambi Sahkari Samiti Limited. These organizations raised approximately Rs 25 to 100 crore from the public, promising lucrative returns.
However, these companies/co-operative societies failed to deliver the guaranteed returns to investors upon maturity and subsequently ceased operations.
Funds from investors were layered, laundered, and redirected to the accounts of Jawahar Lal Shah and his affiliates, with portions used for acquiring immovable properties.
During the course of the ED's investigation, searches were executed under section 17 of PMLA at five locations across Bihar, West Bengal, Delhi, and Uttar Pradesh on January 7, resulting in the recovery and seizure of incriminating documents, including digital devices.
Further inquiries into this case are ongoing.
