ED Freezes Rs 2 Crore in Assets Following Search Operations in Mumbai and Kolkata
Mumbai, 6th September 2024: The Enforcement Directorate (ED) carried out search operations in Mumbai and Kolkata on September 3 as part of an ongoing probe into alleged investment fraud involving Chartered Accountant and investment consultant Amber Rameshchandra Dalal under the Prevention of Money Laundering Act (PMLA), 2002.
The searches resulted in the freezing of movable assets, including cash, bank accounts, and Demat holdings totalling ₹2 crores. Additionally, incriminating documents related to properties in Dubai and digital devices were seized, according to the ED.
This operation marks the second search conducted by the financial probe agency in Dalal’s case. To date, the ED has frozen assets worth ₹39 crore. The investigation was initiated following an FIR registered by the Mumbai Police against Amber Dalal, owner of M/s Ritz Consultancy Services.
Dalal is accused of running a Ponzi scheme, soliciting funds from investors by promising high returns and subsequently disappearing with their money after giving initial payouts. Reports indicate that Dalal collected over ₹600 crore from approximately 1,300 investors, including Bollywood celebrities, businessmen, lawyers, chartered accountants, and senior citizens. He is currently in judicial custody following his arrest by the Economic Offenses Wing (EOW) of the Mumbai Police.
The ED’s investigation has uncovered that Dalal purportedly invested funds in nine commodities—gold, silver, crude oil, natural gas, zinc, lead, nickel, copper, and aluminium—promising annual returns of 18%-22%. He also raised funds from investors in the UAE and the USA using similar tactics.
The search operations revealed a network of intermediaries who funnelled the cash raised by Dalal through accommodation entries in his bank accounts. It was also discovered that new investment funds were used to pay returns to earlier investors.
Further findings indicate that Dalal diverted funds from deceived investors into the accounts of his associates, who then used these funds for stock market trading and acquiring properties both in India and abroad. The ED has identified four such properties, including one in Dubai.
