Synopsis
The ED has filed a prosecution complaint against Amber Dalal for orchestrating an investment fraud involving over 2,000 investors and misappropriating approximately Rs 564 crore. The case is ongoing, with significant assets provisionally attached.Key Takeaways
- ED has filed a prosecution complaint against Amber Dalal.
- Fraud involved over 2,000 investors.
- Estimated fraud amount is Rs 564 crore.
- Ponzi scheme operations revealed.
- Assets worth Rs 67 crore provisionally attached.
Mumbai, Jan 28 (NationPress) The Directorate of Enforcement (ED) in Mumbai has initiated a Prosecution Complaint (PC) against Amber Dalal and several others concerning an extensive investment fraud linked to his company, M/s Ritz Consultancy Services.
This complaint was lodged under the Prevention of Money Laundering Act (PMLA), 2002, before a Special Court (PMLA) in Mumbai.
The ED noted that the PC, submitted on January 23, was acknowledged by the court on January 24.
The inquiry commenced following an FIR filed by the Oshiwara Police Station, Mumbai, on March 25, 2024, which was subsequently handed over to the Economic Offences Wing (EOW) in Mumbai.
According to the ED, Amber Dalal attracted investments from over 2,000 individuals by guaranteeing returns of 1.5% to 1.8% per month via commodity trading. However, instead of fulfilling these commitments, Dalal misappropriated the funds for personal and unrelated activities. The fraud is estimated to be around Rs 564 crore.
The ED accused Amber Dalal of running a Ponzi scheme, utilizing new investments to pay returns to previous investors. The collected funds were funneled through numerous bank accounts belonging to Dalal, his relatives, and associates to obscure their source.
“A substantial portion of the funds was allocated for purchasing properties under the names of family members, with Rs 15.04 crore being diverted to a close associate, Rashmi Prasad,” stated the ED.
During the investigation, the ED provisionally seized assets valued at around Rs 67 crore. This includes real estate, bank balances, DEMAT holdings, insurance policies, and investments in alternative funds. One property among the seized assets is situated in Dubai, United Arab Emirates.
Amber Dalal was apprehended under the PMLA provisions and is currently in judicial custody. The ED is pursuing the confiscation of the attached assets and is actively working to recover the defrauded funds while identifying the involvement of other parties in the scheme.
