The Enforcement Directorate (ED) has uncovered a major alleged financial fraud in Jaipur, seizing a trove of incriminating documents and digital evidence. The raids targeted premises linked to Digi Mudra Connect Pvt Limited and its promoters, revealing what officials describe as a large-scale diversion of investors' funds.
Raids Unearth Evidence of Fund Diversion
ED officers carried out searches from Wednesday through Thursday at multiple locations associated with the company and its promoters, Prakash Chand Jain and Ravi Jain. The central allegation is that the company operated a multi-level marketing (MLM) scheme, luring investors with false promises of high returns and then siphoning off crores of rupees.
During the operation, officials seized critical evidence including bank account details, locker information, and various digital devices. A significant find was property papers that showed a declared value of just Rs 5 lakh for assets actually worth approximately Rs 5 crore, indicating attempts to conceal the true value.
How the Alleged Scam Operated
An ED officer, speaking to TOI on condition of anonymity, outlined the modus operandi. "We got incriminating evidence and documents. Such is our recovery that it will fetch us attachment of various movable and immovable property in this case under the Prevention of Money Laundering Act (PMLA)," the officer stated.
The investigation suggests that Digi Mudra Connect Pvt Ltd collected money from a vast number of investors under the guise of investment plans and commission-based returns. However, instead of deploying these funds for legitimate business activities, the promoters allegedly diverted the money for personal use. The funds were reportedly used to acquire properties in the names of associates and family members, effectively laundering the proceeds of the crime.
Next Steps and Legal Foundation
The ED has now initiated the process of identifying and attaching properties under the PMLA based on the material collected. This financial probe runs parallel to a criminal case. The ED's investigation was triggered by an FIR filed by the Rajasthan police against the company and its promoters for charges including cheating and criminal breach of trust. Following this, the ED registered its own case under the PMLA to trace the money trail.
This case highlights the continuing crackdown on investment frauds that exploit public trust through unsustainable business models like certain MLM schemes, promising unrealistic returns.
