BENGALURU: The Enforcement Directorate (ED) arrested Anas Ahmed on January 20 under the Prevention of Money Laundering Act (PMLA), 2002, in a case connected with fraud committed through Power Bank and other such fraud mobile applications.
The ED had initiated money laundering investigation into the operations of accused entities that induced the public to invest certain amount through Power Bank and other such fraudulent apps by assuring to remit interest on daily or weekly basis on the investment made.
"The accused entities closed their purported business after collecting huge sum of money from the public and went incommunicado. The accused neither paid interest nor returned the principal amount to the public and withheld the investment made by public which has resulted in commission of cheating," stated the central agency in an official release on Thursday.
According to the ED, Ahmed is partner in two accused firms - H&S Ventures Inc and Clifford Ventures. "These two partnership firms are responsible for collection of approximately Rs 84 crore from public. Ahmed has Chinese links and is suspected of being the mastermind of the whole racket," the agency stated.
The ED claimed that Ahmed indulged in corrupt and illegal activities through his partnership firms by deviating from the declared line of business/activity of gaming and has collected money from public under the guise of investment schemes through fraudulent apps. "The proceeds generated through criminal activities have been layered through a number of shell entities to remit out of India and also invest in crypto currencies," the ED stated.
Presently, Ahmed is in judicial custody and lodged in Puzhal Central Prison, Chennai, in the predicate offence booked by CB, CID, Chennai. The Principal City Civil & Sessions and Special Judge for PMLA Cases, Bengaluru, has granted six days of custody of Ahmed to ED on January 20 for enquiring into the fraud committed.