Amber Dalal case: ED conducts search operations in Mumbai, seizes Rs 37 crore worth assets

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The Enforcement Directorate (ED), Mumbai Zonal Office has conducted search operations on June 21, under the Prevention of Money Laundering Act (PMLA), 2002 at various locations in Mumbai, as part of an ongoing probe in Amber Dalal case, an official said on Sunday.

According to the ED, during the course of search action, movable assets i.e. Cash, Bank funds, Demat account holdings to the tune of Rs 37 crore have been frozen and various incriminating documents, digital devices have been found and seized.

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ED had initiated investigation on the basis of FIR. registered by Mumbai Police against Amber Dalal, proprietor of M/s Ritz Consultancy Services.

Amber Dalal is allegedly accused of taking money from investors through a suspected Ponzi scheme by promising high returns and then absconded with their money after giving initial returns. It has been gathered that the amount of money raised by Amber Dalal is more than Rs 600 Crore from 1300 investors. He was arrested by EOW, Mumbai Police and is presently under judicial custody, the ED said.

An official statement said that the ED investigation revealed that Amber Dalal raised money from investors on the pretext that he invested the funds in 9 commodities (gold, silver, crude oil, natural gas, zinc, lead, nickel, copper, aluminum) and trade in them, ensuring the capital is safe and promising an annual return of 18%- 22% to his investors. Further, it has been gathered that using the same modus operandi, he raised money from investors in UAE and USA as well.

"The search operations unveiled a network of stockbrokers, investment advisors who brought clients in lieu of commission. It is also found that payment received from new investment were being utilized to pay out the monthly returns to the old investors, Amber Dalal diverted the funds received in Ritz's account to personal accounts, which were further routed to family member's accounts and used for creating assets. He has diverted approx. Rs. 51 Crore to his personal accounts. These funds were used to acquire assets in India and abroad. Eight such immovable properties in India and two such properties have been identified abroad," the ED said.

It said that it has been revealed that, other than from banking channels, investments were made through cash as well, which was then infused in books as accommodation entries in connivance with Mumbai based jewelers. Returns on such cash-based investments were given to investors in India and abroad (including UK, UAE) by hawala operators.