ED Auctions Seized Aircraft for Rs 3 Crore in Ponzi Scheme Case
The Directorate of Enforcement (ED), Hyderabad Zonal Office, auctioned a Hawker 800A aircraft on July 1, 2026, through MSTC Limited for a sale consideration of Rs 3 crore. The aircraft was seized during a search operation at Rajiv Gandhi International Airport on March 7, 2025, in connection with a Prevention of Money Laundering Act (PMLA) case against Amardeep Kumar, Capital Protection Force Pvt. Ltd., and others.
The ED had filed an original application before the Adjudicating Authority under PMLA, which confirmed the seizure through an order dated August 18, 2025. Subsequently, the ED sought permission to sell the aircraft under Rule 4(2) of the Prevention of Money Laundering (Taking possession of attached or frozen properties confirmed by the Adjudicating Authority) Rules, 2013. The Adjudicating Authority allowed the auction via an order dated November 20, 2025.
Background of the PMLA Case
The ED initiated the PMLA case based on three FIRs registered by the Economic Offences Wing, Cyberabad, against the Falcon Group (Capital Protection Force Pvt. Ltd.), its Chairman and Managing Director Amardeep Kumar, and others. Allegations involve defrauding a large number of investors through a Ponzi scheme amounting to approximately Rs 792 crore. The scheme promised high returns under the guise of an invoice discounting business, but no actual invoice discounting was conducted.
Three accused persons—Sandeep Kumar (brother of Amardeep Kumar), Sharad Chandra Toshniwal (Chartered Accountant), and Aryan Singh Chhabra (CEO of Falcon Invoice Discounting)—were arrested by the ED. A chargesheet was filed before the jurisdictional court on September 29, 2025.
Use of Auction Proceeds
The sale consideration of Rs 3 crore from the aircraft auction will be utilized by the ED for restitution to genuine investors, in accordance with the provisions of the PMLA, 2002, subject to permission from the special PMLA court. This step aims to recover funds for victims of the fraudulent scheme.
