BENGALURU: The Directorate of Enforcement (ED), Bengaluru Zonal Office, on October 5 filed a supplementary prosecution complaint before the special PMLA court in the city against five accused, including Ayub Sayyed.
The ED initiated its investigation based on an FIR registered by the CBI’s Anti-Corruption Branch (ACB), Bengaluru, under various sections of the Indian Penal Code (IPC) and the Prevention of Corruption Act, 1988, which are scheduled offences under the Prevention of Money Laundering Act (PMLA), 2002.
The ED’s investigation revealed that a fake current account in the name of Dr BR Ambedkar Development Corporation Ltd (ADCL) was fraudulently opened at the State Bank of Mysore’s HAL II Stage branch in Bengaluru using forged documents and impersonation. Subsequently, four fixed deposits of Rs 5 crore each belonging to ADCL were prematurely closed using forged TDR/FDR instruments and fabricated pre-closure letters, resulting in the siphoning of around Rs 14.95 crore, which constitutes proceeds of crime (PoC) under the PMLA, the agency stated in an official release on Wednesday.
The investigation further revealed that the proceeds of crime were layered and laundered through multiple bank accounts belonging to individuals and entities, followed by transfers and cash withdrawals to conceal the origin of the funds. Statements recorded under Section 50 of the PMLA also revealed that the funds were knowingly received, transferred and withdrawn as part of the laundering process, the agency added.
ED initiates trial proceedings in online fraud case
The ED Bengaluru zonal office, has filed a prosecution complaint before the PMLA special court on October 7 against three accused persons, involving Jaa Lifestyle India Pvt Ltd and its directors.
The ED investigation was initiated on the basis of an FIR registered by Magadi Road Police Station under IPC against directors of Jaa Lifestyle India Pvt Ltd. “The investigation has revealed that Jaa Lifestyle adopted a structured membership-based model for enrolling members and collecting funds from the public.
Individuals were approached through WhatsApp and other online channels and were informed about the company’s digital marketing and advertisement-viewing programme,” the ED stated on Wednesday. In the instant case, Jaa Lifestyle collected around Rs 4.29 crore from public between December 6, 2020 and June 4, 2021.
“The probe revealed that no such facility of earning by viewing advertisements was provided by the firm; rather, the money was used towards personal expensesof the directors of the company,” the ED added.
