2 held for Rs 1,418 crore Erode investment fraud

CHENNAI: The Directorate of Enforcement, Chennai, has arrested two key operatives in connection with the massive Rs 1,417.86 crore money laundering that defrauded nearly 36,000 investors under the guise of export investments, the agency said.

The arrested individuals, S Naveen Kumar and S Muthuselvam, were taken into custody on September 29 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, the ED’s Chennai Zonal Office-II, said. The Special Court for PMLA cases remanded them in judicial custody.

The ED’s money laundering probe stems from an FIR registered by the District Crime Branch, Erode, under money laundering and the Tamil Nadu Protection of Interests of Depositors Act.

According to agency officials, the duo, along with their associates, floated fraudulent investment schemes under the business names of M/s Unique Exports, East Valley Agro Firms, and other connected entities.

Investors were lured with the promises of lucrative returns from agricultural export profits.

However, financial analysis revealed that the firms undertook virtually no substantial export business, a release said on Thursday.

Around Rs 1,417.86 crore was mobilised from approximately 35,759 gullible investors across the region.