New Delhi [India], August 18 (ANI): The Enforcement Directorate (ED) has seized a large amount of incriminating documents and also frozen proceeds of crime consisting of more than Rs 30 crore worth of listed shares and securities, mutual funds, LIC policies, bank balances and nine high-end vehicles during searches carried out continuously for four consecutive days last week in connection to the SAGA group Ponzi scam.
The agency carried out the search operation from August 13 to August 16 at multiple residential and business premises linked to Sameer Agarwal and his associates across Mumbai and Bhopal in the case involving Loni Urban Multi-State Credit and Thrift Co-operative Society (LUCC) and other affiliated co-operative societies.
ED’s headquarters unit at the national level carried out the search operations under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
Moreover, the ED also seized cash amounting to Rs 1.53 crore, foreign currency amounting to about Rs 35 lakh and gold jewellery and silver bullion worth Rs 5.25 crore during the search proceedings.
ED had initiated an investigation based on multiple First Information Reports (FIRs) registered by Police authorities in Uttar Pradesh, Madhya Pradesh and other states against LUCC and its affiliated group of co-operative societies, alleging that since 2009, the public was fraudulently induced to invest in recurring deposit, fixed deposit and monthly income schemes promoted by Sameer Agarwal (SAGA) Group.
As per the ED, the public was promised high assured returns with assurance that it would be doubled or tripled within three to five years, along with gifts such as cars, without any genuine underlying business activity to support such returns.
“Using fake banking infrastructure and promises of unrealistic returns, more than Rs 10,000 crore was fraudulently collected by SAGA group from the public. Initially, the investors were given certain payouts; however, most of the investments were siphoned off by Sameer Agrawal and his associates towards personal aggrandisement and as market commission to agents and associates,” ED said.
ED further said the funds were collected from the public, predominantly in cash, and funnelled through regional cash-chests before being siphoned off by promoters for investment in immovable and movable assets, both domestically and abroad, using shell companies and through hawala channels.
“Search investigations have revealed an elaborate network of more than 50 such shell entities controlled by operators identified by the Directorate.”
Sameer Agrawal, described as the CMD and principal controller of the SAGA Group, had left the country and is absconding. The ED has already made provisional attachment of assets in the matter under two separate Provisional Attachment Orders, arrested a key functionary of the Group, Ravi Shankar Tiwari, on July 14 this year under the provisions of PMLA, and filed a Prosecution Complaint before the Special Court on July 24. (ANI)
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