Bengaluru (Aryavarth): In a sweeping operation, the Directorate of Enforcement (ED) has laid down the hammer on M/s Hindustan Infracon India Ltd, executing extensive search operations across five locales in Bengaluru and Mandya, Karnataka on 27th June, 2023. This move was made possible by the powers vested in the ED under the Prevention of Money Laundering Act, 2002 (PMLA). The search was connected to a burgeoning investigation into a Ponzi scheme fraud case that’s sent ripples throughout the country.
M/s Hindustan Infracon India Ltd and its associated individuals were already in the ED’s crosshairs. A case was booked against the company and its promoters/directors for orchestrating a massive swindle amounting to approximately Rs. 191.54 Crore. This case came to the fore based on an FIR lodged by Vijayanagar Police Station in Bengaluru city, with several sections of the IPC serving as the bedrock of the charge.
In its tenacious probe, the ED unearthed that the company’s promoters and directors had woven an alluring web of high-interest investment schemes. However, this turned out to be nothing more than a mirage. The firm amassed approximately Rs. 389 Crore from around 7.18 lakh unsuspecting investors. Shockingly, it defaulted on repayments amounting to about Rs. 199 Crore, betraying the trust of hardworking individuals who were lured by the promise of attractive returns.
The search operations conducted by the ED led to the seizure of damning evidence in the form of incriminating documents and records of clandestine cash transactions. A startling discovery was also made; the illicit proceeds were channeled into acquiring multiple immovable properties. The ED has seized all related documents and the investigation is continuing full steam ahead.