CHENNAI: The Enforcement Directorate (ED) arrested two people in a money laundering case linked to an investment fraud that allegedly mobilised around Rs 1,417.86 crore from 35,759 investors, the agency said.
The two, identified as S Naveen Kumar and S Muthuselvam, were arrested on Tuesday under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. They were produced before the Special Court, PMLA, which granted them 15 days’ judicial custody, the ED said in a release.
According to the ED, Naveen Kumar, Muthuselvam and their associates devised and operated investment schemes named UNI, FNP, FAP and UNR under the banner of Unique Exports, East Valley Agro Firms and other related entities. Investors were allegedly induced to invest by promising high returns from agricultural goods exports.
However, the entities did not undertake any substantial exports but continued to collect money from investors on the promise of high returns against export profits.