The Enforcement Directorate (ED) has initiated the process to sell a seized Hawker 800 aircraft, a key asset linked to the massive Falcon Group investment fraud. The auction is scheduled for December 9 and will be conducted by MSTC Limited at the Begumpet airport in Hyderabad.
High Maintenance Costs Prompt Urgent Sale
The federal probe agency decided to auction the aircraft due to its 'perishable' condition and the exorbitant costs involved in its upkeep. Officials stated that the proceeds from the sale will be utilised to provide compensation to the victims who were cheated in the large-scale scam. The plane was originally seized at the Rajiv Gandhi International Airport in Hyderabad during ED searches targeting Amardeep Kumar, Capital Protection Force Private Ltd, and other entities. To reduce expensive hangar charges, the aircraft was later moved to Begumpet airport.
Legal Green Light Under PMLA Rules
Following the seizure, the ED filed an application before the adjudicating authority under the Prevention of Money Laundering Act (PMLA). The authority confirmed the attachment in August of this year. The ED then invoked Rule 4(2) of the Prevention of Money Laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority) Rules, 2013.
This specific rule allows for the sale of a confirmed attached property if it is prone to speedy and natural decay or if the expense of maintaining it is likely to exceed its value. On November 20, the adjudicating authority granted permission to the ED's Hyderabad zonal office to proceed with the auction, setting the stage for next week's sale.
The Massive ₹792 Crore Falcon Group Fraud
The ED's investigation stems from FIRs registered by the Economic Offences Wing of Cyberabad against Falcon Group (Capital Protection Force), its chairman and managing director Amardeep Kumar, and his associates. They are accused of orchestrating a bogus invoice discounting scheme named 'Falcon Invoice Discounting'.
Investigations reveal that the group allegedly collected a staggering ₹792 crore from unsuspecting investors through this programme. It is believed that Kumar fled the country using the same Hawker 800 aircraft before the FIRs were filed and remains absconding abroad.
In the course of the probe, the ED has provisionally attached assets worth ₹18.6 crore and arrested three individuals: Sandeep Kumar (Amardeep's brother), chartered accountant Sharad Chandra Toshniwal, and Aryan Singh Chhabra, the Chief Operating Officer of Capital Protection Force. A prosecution complaint was filed before the special PMLA court in Rangareddy on September 29.
