ED freezes Rs. 51.11 Cr in Matrix Partners Fund (MPF) App PMLA case

In connection with investigations into improper use of the Matrix Partners Fund (MPF) App and other related Apps, the Enforcement Directorate (ED) conducted search operations on December 9, 2022 in various locations in Bengaluru, Pune, and Noida in accordance with the provisions of the PMLA, 2002 and placed a hold on a sum equal to Rs. 51.11 Crore.

On November 26, 2021, a First Information Report (FIR) was submitted to the Mawlai Police Station in Shillong, Meghalaya, naming the Matrix Partners Fund (MPF) App and its developers as the accused. Many people across the country lost money because they trusted the Matrix Partners Fund (MPF) App, which turned out to be a “scam investment Application” that promised exorbitant returns, thus luring gullible investors throughout the country to invest their hard-earned money in the false expectation of high returns. This PMLA case is based on that FIR.

ED freezes Rs. 51.11 Cr in Matrix Partners Fund (MPF) App PMLA case

The ED learned during the course of their investigation that a sizable number of companies had ties to the MPF App and were in charge of running numerous other Apps related to fraudulent loans, investments, games, betting, rummy, and other activities. The developers of the MPF App used forged documents to register new companies and made fictitious directors for these organisations. They then develop mobile apps and accept payments via different Payment Gateways while fabricating or misrepresenting the nature of the business connected to those apps.

The ED discovered that the entities associated with the MPF App used to register themselves as Merchants on various Payment Gateways after creating the Apps and opening Bank Accounts, and then used the Payment Gateways’ Payin and Payout features to collect and disburse money to the public. When people initially received good returns or rewards, they invested more money, and after a period of time, when a large amount of money was collected, the people behind those Apps deactivated the Apps and vanished with the ill-gotten money. These companies were also discovered to be operating from addresses other than those listed on the MCA website/registered address and to have fake addresses, similar to the dummy directors.

During the search operations, an amount of Rs 51.11 Crore has been freezed by the ED in Merchant IDs and Bank Accounts of the entities who were behind the Matrix Partners Fund (MPF) App and other related Apps. Further investigations will continue.


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