Ponzi scheme: ED attaches Rs 35.7-crore assets in Bengaluru

New Delhi, November 3

Assets worth Rs 35.7 crore have been attached under the anti-money laundering law in connection with a probe into a Bengaluru-based ponzi scheme under which numerous people were allegedly duped, the Enforcement Directorate (ED) said on Wednesday.

A provisional order has been issued under the Prevention of Money Laundering Act (PMLA) to attach land, office spaces and residential flats in Bengaluru and bank and fixed deposits of Rs 1.49 crore held in the name of Vikram Investments and associates.

The ED case of money laundering was filed on the basis of a March 2018 FIR of the Bengaluru Police.

Police claimed that "partners and other associates of Vikram Investments like Raghavendra Srinath, KP Narasimhamurthy, M Prahlada, KC Nagaraj and Sutram Suresh cheated the general public by luring them to invest in Vikram Investments, promising high returns under the guise of commodity trading".

"The modus operandi adopted by the company was that they were involved in collecting investments from customers under the guise of commodity trading offering huge returns to the extent of up to 30-35 per cent per annum," the ED said in a statement.

The firm was not registered with any of the regulatory agencies including the Reserve Bank of India, it said.

"They ensured that customers would get back their first instalment as promised. This earned them trust and they lured customers to invest even more after which the company would stop paying them back money, including the principal amount," the statement said.

Some "high-profile personalities also invested in this scheme in the hope of earning huge returns", it said.

"Initially, the company paid profits to the existing investors out of funds obtained from its new investors," the ED statement said.

Probe found that the company "used" LIC agents and others who would convince their friends and family to invest, and in exchange they got heavy commission. PTI