Firm raided for Foreign Exchange Management Act violations, says ED

Further, the investigations had found that the scheme run by the firm was surely a potential ponzi scheme
Enforcement Directorate(Image from official website)
Enforcement Directorate(Image from official website)

BENGALURU: While the CCB police are on the lookout for former BJP Minister Janardhana Reddy, who allegedly received gold worth Rs 18 crore from a con businessman, promising him of relief from an ED probe, the ED has stated that Ambidant Marketing Pvt Ltd ran a potential ponzi scheme.

In a press release issued by the Enforcement Directorate (ED), it was stated that its Bengaluru Zonal Office, on the basis of reasonable information received from the Income Tax Department in November 2017, conducted searches at several premises of Ambidant Marketing Pvt Ltd run by Syed Fareed Ahmed and his son Syed Afaq Ahmed.      

“They had floated Ambidant Marketing Financial Services LLC in Dubai in September 2017. During the search, cash to the tune of Rs 1.97 crore was seized by the ED from the residential premises of Fareed for violations under Foreign Exchange Management Act (FEMA). Several FEMA violations like forex trading to extent of $ 6,62,146, the opening of accounts abroad by a resident Indian without the permission of RBI, incorporation of a firm in Dubai without prior approval of RBI or Government of India came to the fore during the investigations,” the release said.

Further, the investigations had found that the scheme run by the firm was surely a potential ponzi scheme. “The ED has written to the RBI to have a relook into the matter and protect the interest of the investors. The state government authorities have also been requested to provide copies of all FIRs, including current investigation by the Karnataka Police,” the release stated.

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