36,000 investors duped in Rs 1,417 crore fraud scam, ED arrests 2

The Enforcement Directorate arrested two key operatives in connection with a massive financial fraud involving approximately Rs 1,417.86 crore. Investigators stated that nearly 36,000 investors across multiple regions were duped through fraudulent schemes promising high returns linked to agricultural export profits. Authorities initiated the probe following an FIR registered by the District Crime Branch in Erode under relevant monetary and depositor protection legislation.

According to investigators, the accused floated bogus investment schemes under various names using linked entities such as Unique Exports and East Valley Agro Firms. Financial analysis revealed that these firms conducted virtually no actual export business, functioning instead as a trap to misappropriate capital. The mastermind allegedly controlled banking operations, while the second arrested operative helped design the schemes and recruit investors.

The agency reported that over Rs 719 crore was deposited into accounts tied to Unique Exports, with money subsequently routed through more than 100 bank accounts belonging to associates, family members, and linked firms. The accused allegedly masked illicit fund transfers by falsely recording large sums as salary payments and agricultural commodity purchases, despite having minimal staff and no physical trade.

The arrests followed searches conducted by the Enforcement Directorate at nine associated premises under the Prevention of Money Laundering Act. Both arrested individuals were produced before a Special Court and remanded to judicial custody, while authorities continue to trace additional assets and investigate the wider network involved in the scam.

Not yet reported: The articles do not specify the final recovery amount of assets or the ultimate outcome of the judicial proceedings for the accused.