The promoter and director of a West Bengal-based company that allegedly ran a ponzi scheme and cheated gullible investors has been arrested under the anti-money laundering law, the Enforcement Directorate said on Tuesday.
Biswapriya Giri of the URO group was arrested on Sunday and a special Prevention of Money Laundering Act (PMLA) court in Kolkata sent him to ED custody till September 1, the central agency said in a statement.
The arrest came after the ED carried out raids at three locations in the state on August 18-19.
The URO group of companies collected more than Rs 200 crore from gullible investors with the promise of giving higher returns through a network of agents, the agency said.
The group “projected” that it is involved in various businesses like agro industry, lifecare, hotel and resorts, infotech, automotive, real estate, etc. but it subsequently “defaulted’ on repayment of maturity amount, and “diverted” the collected fund for personal gain and to various other beneficiaries, it said.
The probe found that the “proceeds of crime” have been used for acquisition of movable and immovable assets by the promoters and associates of the company, and a substantial amount of fund was also “diverted for promotional and advertisement activities in order to promote this illegal business and to prevent adverse media reports”, the ED alleged.
The money laundering case stems from a CBI FIR that was filed against the accused in September, 2017.
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