ED files prosecution complaint against 2 people under PMLA in Ponzi schemes case
Jan 23, 2021
New Delhi [India], January 23 : The Directorate of Enforcement (ED) has filed a prosecution complaint against Radhe Shyam and Bansi Lal, owners of Haryana-based multi-level marketing (MLM) scheme promoting company in a Ponzi scheme case.
As per a statement, Shyam and Lal floated companies in the name of Future Maker Lifecare Private Limited, Hisar, and M/s FMLC Global marketing Private Limited, and duped several innocent persons in many parts of the country.
"The MLM scheme consisted of the pyramidal structure where the persons at the top of the pyramid gain at the behest of the loss borne by the persons at the base of the pyramid," the statement said.
The prosecution complaint has been filed under the Prevention of Money Laundering Act,2002 (PMLA) before Special Judge(PMLA) at Panchkula with a prayer for awarding punishment to the accused persons and confiscation of attached assets to the tune of Rs 261.35 crore under the Act.
The ED initiated the investigation on the basis of various FIRs registered in the state of Haryana under sections 120 B, 34,420 of IPC, and 4,5,6 of prize chit and money circulation (banning act, 1978).
An investigation conducted under the PMLA revealed that around 31 lakh investors lost their money by making investments in the schemes floated by the accused.
Initial investors were paid high returns to attract more investors and entice them to invest more money. The schemer pays a "return" to initial investors from the investments of new participants, rather than from genuine profits.
Shyam lured innocent persons through speeches in fancy seminars conducted across India promising returns up to 5 to 8 times of the investment in 2 years. Lal on the other hand layered and laundered the tainted money collected from the investors in various paper concerns.
The funds collected were diverted into the bank accounts of family members, through which they bought properties across the country.
One flat in Chandigarh, two flats in Delhi, agricultural lands, balances in bank accounts, and cash totalling Rs 261.35 crore have been provisionally attached under PMLA.
Further investigation is currently underway.
