Chennai, July 2: The Enforcement Directorate (ED) announced on Thursday that it has conducted searches at eight locations in Tamil Nadu and Kerala as part of its investigation into Dream Makers Global Private Limited (DMGPL) for money laundering activities. The company is accused of running a multi-level marketing (MLM) scheme and a Ponzi scheme, allegedly deceiving thousands of investors by promising exorbitant returns on their investments.
The raids were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
In a statement released on Thursday, the ED revealed that searches were conducted on June 30 in Coimbatore and Krishnagiri districts of Tamil Nadu, as well as in Malappuram and Thrissur districts of Kerala.
The agency initiated its money laundering investigation based on a First Information Report (FIR) filed by the Economic Offences Wing of the Tamil Nadu Police under various sections of the Indian Penal Code.
According to the ED, Dream Makers Global Private Limited and its key managerial personnel allegedly raised crores of rupees from the public by offering investment opportunities in software-related projects and packages. Investors were lured with promises of high returns and assurances that their investments would double within 150 days.
To build trust among investors and attract more deposits, the company initially paid returns. However, it reportedly defaulted on subsequent payments, leading to significant financial losses for thousands of depositors across the region.
The ED has alleged that the late Managing Director S. Satish Kumar, Director Gunavati, and Manager Mugunthan Nair played crucial roles in operating this scheme.
Reports indicate that Gunavati and her husband Satish Kumar jointly managed the company and collected deposits from the public, while Mugunthan Nair allegedly organized promotional meetings, enticing people to invest with false promises of guaranteed profits.
Furthermore, the agency stated that the substantial amounts obtained from commissions and investments were allegedly used to purchase real estate, vehicles, and other personal assets.
During the raids, officials reportedly seized details of properties purchased with the proceeds of crime, including incriminating documents, diaries, digital records, and other relevant materials.
Bank accounts, fixed deposits, and other financial instruments linked to the accused and their associates have also been identified, many of which have already been frozen by other law enforcement agencies.
The ED confirmed that further investigations into the money laundering case are ongoing.
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