New Delhi [India], January 18 (ANI): The Enforcement Directorate (ED) conducted searches at multiple locations in Mumbai, Bengaluru, and Chennai in relation to a money laundering case against Vihaan Direct Selling India Private Limited, the agency said on Wednesday.
Vihaan Direct Selling India Private Limited is the master franchisee company of Qnet Ltd in India.
During the searches, the ED froze 36 bank accounts relating to various companies/individuals/proprietorships connected with the case, with amounts involving more than Rs 90 crore.
The central agency initiated a money Laundering investigation on the basis of an FIR against Qnet Ltd., Vijay Eswaran, Vihaan Direct Selling (India) Pvt. Ltd. and other companies and individuals registered by EOW, Mumbai.
The ED said its investigation has revealed that Vihaan Direct Selling India Pvt. Ltd used various shell companies, and dummy proprietorships for routing funds received from a huge number of innocent investors.
Vihaan Direct Selling India Pvt. Ltd allegedly duped a huge number of innocent investors in India by investing their hard-earned money in Ponzi schemes in the guise of direct selling business. Various investors were duped of their hard-earned money in the guise of huge profits without informing them of the nature of business and the details of the utilisation of their invested money, the agency said.
According to the FIR registered by Mumbai Police, the total estimated proceeds of crime is about Rs. 400 crore. However, during the course of the investigation, it was observed that more than Rs 2,000 crore was routed by way of opening various shell companies by these entities, the agency said.
The searches were conducted in 5 locations in Mumbai, 2 locations in Bengaluru, and 2 down south, in Chennai. Various incriminating documents and digital devices were seized, the ED said, adding that 36 bank accounts amounting to more than Rs 90 crore, and belonging to various companies connected with the case were also frozen. (ANI)
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