The ED has searched 15 locations in Nagpur and Mumbai and seized assets worth Rs 6.72 crore in connection with investment fraud by ‘Pankaj Mehadia and others’.
The Enforcement Directorate (ED) has conducted a search and survey operation on March 3, 2023, at 15 locations in Nagpur and Mumbai as part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA), 2002 relating to the investment fraud by ‘Pankaj Mehadia and others’.
The ED conducted searches at the residences and offices of Pankaj Mehadia, Lokesh Jain, and Karthik Jain, who are the main accused of this scam, as well as on the office and residential premises of the main beneficiaries.
The ED search and survey operation was conducted to gather evidence and documents related to the investment fraud, and to determine the total amount of the fraud committed. The ED is committed to uncovering the truth and bringing the perpetrators of this fraudulent activity to justice.
The ED has initiated an investigation under PMLA based on the FIR registered at Sitabuldi Police Station in Nagpur against Pankaj Nandlal Mehadiya, Lokesh Santosh Jain, Kartik Santosh Jain, Balmukund Lalchand Keyal, and Premlata Nandlal Mehadiya.
The accused in this case are facing allegations of committing fraud and causing significant losses to investors. A thorough investigation by the PMLA has uncovered evidence that Pankaj Nandlal Mehadiya, together with his accomplices, was operating a Ponzi scheme, luring investors with promises of a 12% assured profit after deducting TDS on their investments between 2004 to 2017.
Between 2005 and 2016, a group of suspects allegedly engaged in a fraudulent Ponzi scheme that was designed to deceive innocent investors and to misappropriate funds so received. The scheme involved making false promises of assured returns to attract investors and encourage them to invest increasingly larger sums of money into associated firms and companies. However, upon receiving the funds, the accused individuals failed to return the money to the investors, leading to huge financial losses to such invetors. To conceal their activities, the suspects made transactions totaling over Rs 150 crore in bank accounts, but these transactions are suspected to lack bona fide business deals and may be fraudulent or accommodation entries.
The ED carried out searches and surveys at 15 locations in Nagpur and Mumbai beginning March 3, 2023. During the operation, the ED managed to seize and recover gold and diamond jewellery worth approximately Rs 5.51 crore, along with cash of about Rs 1.21 crore, digital devices, and several incriminating documents. Total assets seized Rs 6.72 crore.
