Chennai, June 17: The Enforcement Directorate (ED) has conducted significant raids in Tamil Nadu, targeting eight business and residential locations in Chennai, Erode, Coimbatore, and Krishnagiri. This action is part of an investigation into a money laundering case associated with an alleged ₹400 crore Ponzi scheme. Authorities seized several digital devices and two luxury cars during the operation.
The ED’s Chennai zonal office executed these raids under Section 17(1) of the Prevention of Money Laundering Act (PMLA). The investigation was initiated based on multiple FIRs filed by the police in Tamil Nadu and Karnataka under various sections of the Indian Penal Code.
According to the ED, the mastermind behind this Ponzi scheme is S. Naveen Kumar, who operated the network with associates including Jeevalta, K. Prabhu, K. Mathan Kumar, Muthuselvam, J. Franklin, and others.
The gang allegedly lured investors with promises of exorbitant profits from investments in the export business of onions, potatoes, and other agricultural products. They promised returns exceeding 200% in a short period and offered attractive referral commissions for bringing in friends and relatives.
The investigation revealed that several companies, such as M/S Unique Exports, East Valley Agro Farms, Unique Rubber Industries, Unique International Group, Sara Exports, Indo-Russian Rare Earth Metals, and Indo-Russian Business Associates, were established to collect funds from investors and transfer them through various bank accounts.
The ED has indicated that approximately ₹400 crore was fraudulently raised from the public. Allegedly, these funds were used for investments in real estate, fixed deposits, foreign transactions, and transferring money to associates and related companies.
During the raids, ED officials confiscated laptops, mobile phones, pen drives, and other digital devices. They also recovered several incriminating documents related to the Ponzi scheme and investments in real estate. Two luxury vehicles were also seized during the operation.
The ED has stated that further investigations are ongoing.
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