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₹2,459 crore Ponzi case: ED alleges investor funds routed…

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activePonzi / Investment SchemePan India

₹2,459 crore Ponzi case: ED alleges investor funds routed through family accounts and firms; 35K duped — Details

The Enforcement Directorate (ED) filed a prosecution complaint before a court in Mangaluru against five individuals and entities in connection with an alleged ₹2,459 crore Ponzi scheme. Investigators state that the operation defrauded more than 35,000 investors across multiple regions. The alleged mastermind and his firm are among those named in the money-laundering case.

State

Multiple States

First reported

October 2026

Amount alleged

₹2,459 crore

Unpaid principal

₹2,125.60 crore

Investors affected

More than 35,000

Agency involved

Enforcement Directorate (ED) and Malamaruthi Police Station

Arrests

The alleged mastermind was arrested and is in judicial custody

Status

Prosecution complaint filed seeking conviction

The full story

Everything you need to know about this case, in one place.

According to the agency, the network allegedly promised investors a guaranteed monthly return of 3% and additional referral commissions. Investigators found that funds collected from new participants were primarily used to pay earlier investors to maintain trust, while the remaining money was allegedly diverted into real estate, stock markets, and film production.

Authorities searched multiple locations across Belagavi, Chikkodi, and Nipani, seizing financial documents and digital devices. The ED also froze bank balances and fixed deposits worth over ₹2 crore linked to key associates.

The money-laundering investigation originated from an FIR registered at the Malamaruthi Police Station in Belagavi under various legal provisions concerning regulated deposits and public interest protection in financial establishments.

Not yet reported: The articles do not mention the final court verdict or the total number of individuals eventually convicted.

Where the case stands

The latest position in the reports we read.

A prosecution complaint has been filed before the III Additional District and Sessions Court in Mangaluru seeking the conviction of the accused, and the alleged mastermind remains in judicial custody.

Who was affected

Described in general terms; we do not name victims.

More than 35,000 investors who were left without repayment of their principal amounts totaling ₹2,125.60 crore.

Timeline

Key dates as reported, oldest first.

August 13The alleged mastermind of the Ponzi scheme was arrested and placed in judicial custody.

August 2026The ED conducted searches at eight locations linked to the accused and seized financial records and digital devices.

October 9The ED filed a prosecution complaint before the court in Mangaluru seeking the conviction of the accused.

How the scam worked

The method described in the reports.

Promised investors a guaranteed monthly return of 3% on their deposits.
Offered an additional referral commission of 0.5% for bringing in new investors.
Used funds collected from new participants to pay off earlier investors and sustain the illusion of profitability.
Diverted remaining public deposits into high-risk stock market trading, real estate, and film production.
Channeled money into family bank accounts and cooperative credit institutions to obtain loans for land purchases.

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Sources and further reading

Optional. The full story is above; these are the original reports it was prepared from.

livemint.comOriginal report LivemintOpens via Google News

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