Did ED Arrest a Delhi-Based Forex Supplier Linked to a ₹903 Crore Chinese App Fraud?
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Synopsis
The arrest of Rohit Vij marks a significant development in the investigation of a massive Chinese app investment fraud case. With over ₹903 crore involved, this case underscores the need for vigilance against fraudulent schemes operating in the digital investment space.
Key Takeaways
- Rohit Vij arrested for involvement in a ₹903 crore fraud.
- Chinese app 'LOXAM' deceived numerous investors.
- Illicit funds funneled through shell companies.
- ED's actions underline the fight against financial fraud.
- Importance of public awareness in investment safety.
New Delhi, July 4 (NationPress) The ED apprehended a foreign currency trader, identified as one of the key players in a fraudulent Chinese app investment scheme exceeding ₹903 crore. During raids conducted at five locations in Delhi, officials seized several incriminating documents, as confirmed by a spokesperson on Friday.
Rohit Vij, the principal figure behind the conversion of illicit proceeds into foreign currency, was detained on June 30 due to his association with a counterfeit investment application named ‘LOXAM’, which falsely claimed ties to a well-known French multinational corporation.
Vij's business entities and affiliates underwent scrutiny under the PMLA, 2002, as stated by an official source.
Following Vij's arrest, the ED presented him before a Special PMLA Court, which authorized a five-day custody for the investigative agency.
The investigation commenced after the ED received a report from Cyber Crime, Hyderabad, regarding allegations that several Chinese nationals, in collaboration with Indian associates, had deceived numerous investors by promising unrealistically high returns via their fraudulent investment app.
As per the findings, the illicit funds were deposited into an account belonging to a shell company, M/s Xindai Technologies Pvt Ltd, which was established under the name of an Indian individual per the directives of a Chinese national named Jack.
The agency reported that Jack gained access to the Internet Banking credentials and funneled the collected funds through 38 mule accounts, which were then exchanged into foreign currencies with the assistance of Vij and his associates via shell money-changing entities such as Ranjan Money Corp Pvt Ltd and KDS Forex Pvt Ltd, both operated out of Delhi.
Vij and his partners converted the illicit funds into foreign currencies, primarily in US dollars and UAE Dirham, distributing them to a Chinese fraudster through various intermediaries using hawala channels.
A total of ₹171.47 crore was laundered via M/s Xindai Technologies Pvt Ltd and subsequently converted into forex through M/s Ranjan Moneycorp Pvt Ltd and M/s KDS Forex Pvt Ltd.
However, an analysis of the bank accounts associated with M/s Ranjan Money Corp and M/s KDS Forex Pvt Ltd revealed that within seven months, these entities, under Rohit Vij's control, converted ₹903 crore of similar tainted funds generated by the Chinese fraudsters and other implicated individuals.
Point of View
This incident highlights the growing sophistication of financial fraud, particularly through digital platforms. It serves as a reminder of the importance of regulatory vigilance and public awareness in safeguarding against such deceptive practices. Nation always supports transparent financial operations and urges stringent actions against fraudsters.
NationPress
20/07/2025
Frequently Asked Questions
What is the Chinese app investment fraud case about?
The case involves a fraudulent investment app named 'LOXAM' that deceived investors by promising unrealistically high returns, leading to a loss of over ₹903 crore.
Who is Rohit Vij?
Rohit Vij is a foreign currency businessman arrested by the ED for his role in converting proceeds from the fraudulent app into foreign currency.
What actions did the ED take?
The ED conducted raids, seized incriminating documents, and arrested Rohit Vij, subsequently placing him in custody for further investigation.
How was the fraudulent money laundered?
The tainted money was funneled through shell companies and converted into foreign currencies, primarily through hawala channels.
What are the implications of this case?
This case underscores the necessity for enhanced scrutiny of digital investment platforms and the importance of consumer awareness to prevent financial fraud.
