Supreme Court Takes Firm Stance on Ponzi Fraud Case, Demands Full Asset Disclosure
In a decisive move against financial fraud, the Supreme Court of India has issued a stringent directive to Ayushi Mittal, who has been in custody since 2017 alongside her husband Anubhav Mittal. The court has ordered her to provide comprehensive details of assets belonging to close relatives from both her side and her in-laws' side before her bail plea can be entertained.
Background of the Massive Ponzi Scam
The case revolves around a staggering Rs 3,700 crore ponzi fraud orchestrated through the 'Social Trade' scheme launched by Ablaze Info Solutions. This scheme, based in Noida, lured investors with promises of returns for simply liking various social media pages. According to the petitioner's counsel, the company has returned Rs 2,650 crore of the collected amount, while the Enforcement Directorate has frozen approximately Rs 650 crore in bank accounts.
Court's Stern Rebuke and Specific Demands
During the hearing before a bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M. Pancholi, the counsel for Ayushi Mittal argued that the company is under liquidation, leaving no assets for the accused couple. The bench strongly disapproved of this stance, emphasizing the gravity of the situation.
The bench stated, "You have siphoned off thousands of crores by duping the public and now take a stand that you do not have any assets." It further directed, "The petitioner will give a true description of assets belonging to her, husband, children, close relatives on her as well as in-laws' side, directors and managers of the company. Unless these details are submitted before the court, the bail plea would not be considered."
Involvement of Enforcement Directorate and Case Details
To ensure thorough investigation, the bench has made the Enforcement Directorate a party to Ayushi Mittal's bail plea. This step aims to ascertain whether the assets of the petitioner, her family, and close relatives have been attached by authorities. The fraud came to light when Anubhav Mittal was arrested in February 2017 by the Special Task Force of the Uttar Pradesh Police, with Ayushi Mittal apprehended later in December from Pune.
The company, Ablaze Info Solutions, was registered on September 2, 2010, at an address in Chandni Chowk, with Anubhav and his father Sunil Mittal serving as directors initially. Ayushi Mittal was appointed as a director in March 2016, following her marriage to Anubhav, replacing her father-in-law in that role.
Implications and Next Steps
This ruling underscores the Supreme Court's commitment to holding fraudsters accountable and recovering illicit gains. By demanding asset disclosures from extended family members, the court aims to trace any hidden or transferred funds. The case highlights the severe consequences of financial scams in India, with the court taking a proactive approach to safeguard public interests and ensure justice for the victims of this massive ponzi scheme.
