The Directorate of Enforcement (ED) in Ranchi has made a significant breakthrough in a high-profile financial fraud case, arresting the directors of a private company accused of orchestrating a massive multi-level marketing (MLM) scam. The agency took into custody Chander Bhushan Singh and his wife, Priyanka Singh, directors of M/s Maxizone Touch Pvt. Ltd., in connection with alleged money laundering and the misappropriation of public funds exceeding Rs 307 crore.
The Arrest and Court Proceedings
The arrests were carried out on Tuesday, following an intensive investigation. The accused were subsequently presented before a special Prevention of Money Laundering Act (PMLA) court in Ranchi. The court granted the ED's request for custodial interrogation, remanding Chander Bhushan Singh to five days of ED custody. This move is expected to allow investigators to unravel the complex web of financial transactions and uncover the full extent of the alleged fraud.
Details of the Massive MLM Fraud
In an official press statement released on Wednesday, the ED outlined the contours of the elaborate scam. The investigation revealed that the accused allegedly operated a fraudulent investment scheme, strategically designed to lure the general public. They made enticing promises of high monthly returns and attractive benefits to collect funds.
The modus operandi involved gathering unauthorized deposits from countless investors. The ED probe found that the couple channeled these funds through at least 21 different bank accounts, amassing an enormous sum before disappearing with the money. For the past three years, they successfully evaded multiple law enforcement agencies, including the police forces of Jharkhand, Rajasthan, and Assam. Their evasion tactics included frequently changing their residential addresses and utilizing fake identity documents to stay off the radar.
Nationwide Raids and Evidence Seizure
Prior to the arrests, the ED had conducted extensive search operations across several states to gather concrete evidence. Raids were executed on September 16 and December 3 at various locations spanning Delhi, Noida, Ghaziabad, Vaishali in Bihar, Meerut, Ranchi, and Dehradun.
These operations proved crucial, leading to the seizure of a trove of incriminating documents. Among the items recovered were fake identity cards, handwritten notes, and detailed diaries. These records are believed to contain vital information about key financial transactions and cash dealings, providing a paper trail for the investigators.
The case underscores the severe risks associated with unregulated investment schemes that promise unrealistic returns. It also highlights the persistent efforts of central agencies like the ED to track down and prosecute those involved in large-scale financial crimes that erode public trust and cause significant economic harm to ordinary citizens.
