Bengaluru: MD of investment firm held under PMLA

BENGALURU: The ED arrested Misbahuddin S of Injaz International and associated group, Bengaluru, for his alleged involvement in a scam running into Rs 250 crore, under the Prevention of Money Laundering Act (PMLA), 2002. Misbahuddin was produced before the Special (PMLA) Court, Bengaluru, and was remanded in ED custody till November 19, the agency stated on Thursday.

The ED had initiated a money laundering investigation on the basis of an FIR registered against Injaz International and associated group under sections of Prize Chits and Money Circulation Schemes (Banning) Act, 1978, Chit Funds Act, 1982, and Section 420 of the Indian Penal Code (IPC) by the Wilson Garden Police Station. The CCB, Bengaluru, initiated the investigation in the multi-crore scam.

During investigation, it was revealed that Injaz International is a partnership firm, where Suhail Ahamed Shariff and Misbahuddin are partners.  “As per the FIR and investigation, Injaz International accepted deposits from investors, cheated them and violated RBI guidelines,” the ED charged. 

“The company was allegedly running investment schemes by luring depositors with promises of high returns since 2016. It routed money through multiple bank accounts and had neither filed ITR returns nor done any audits. Injaz International collected huge funds from investors and siphoned off the collected amount to various individuals, including its partners and related entity - Injaz Builders and Developers,” the Central agency stated.