Enforcement Directorate Seizes Documents and Devices in Multi-Crore Scam Affecting Over 2,500 Investors

||Black and White Digital News ||

||Parvinder Singh August 03,2024 ||

JAMMU: The Enforcement Directorate (ED) conducted simultaneous raids today in the Union Territories of Jammu and Kashmir, Ladakh, and the state of Haryana as part of an extensive investigation into a cryptocurrency fraud case where investors lost over Rs 7 crore. Under the supervision of Joint Director Jammu and Kashmir Navneet Aggarwal, the ED raided six premises in Leh, two in Jammu, and one in Haryana, focusing on AR Mir and his associates.

Raids and Seizures:

In Jammu, raids were conducted at Ajay Kumar Choudhary’s residence in Miran Sahib and Channi Singh’s in Talab Tillo Camp. In Leh, the ED raided AR Mir’s premises in Choglamsar. During these operations, the ED seized various documents, devices, and papers relevant to the fraud, which are expected to provide critical evidence in the ongoing investigation.

Details of the Fraud:

According to officials, a total of 2,508 investors deposited over Rs 7.34 crore into a fraudulent cryptocurrency business named “Emollient Coin Limited.” Investors were promised high returns but received nothing in return, as the business turned out to be a scam. The promoters allegedly laundered the funds to purchase land assets in Jammu.

Background of the Case:The money laundering investigation stems from an FIR registered in March 2020 in Leh, along with additional complaints in Jammu and Kashmir against AR Mir and Ajay Kumar Choudhary. The Leh Police’s FIR detailed an inquiry by a committee formed by the local District Magistrate. This inquiry found that Mir and his agents were operating the fake cryptocurrency business from an office located at the Anjuman Moin-Ul-complex, opposite SNM Hospital, in Leh. The office was sealed during the investigation for allegedly cheating numerous individuals by promising to double their investments.

Modus Operandi:ED officials revealed that the accused lured people into purchasing “Emollient Coin” using cash or bank transfers, with the assurance of returns of up to 40% after a lock-in period of 10 months. Investors were also promised a 7% commission for referring others, thus forming a multi-level marketing chain. A total of Rs 7.34 crore was invested by 2,508 people in this scheme.

Involvement of Indian and International Entities:The fraudulent company, incorporated in London in September 2017, had Henry Maxwell from the UK as its director. In India, the company was promoted by Naresh Gullia and Channi Singh. However, the company was deliberately dissolved in March 2019. Following this, Mir and Choudhary launched a real estate business and acquired lands in Jammu using the defrauded funds.

Investigative Actions and Future Steps:

The ED’s investigation aims to trace the laundered funds and identify further implicated parties. The crackdown included analyzing the seized materials to uncover the full extent of the fraud and to bring justice to the affected investors.

Statements and Assurances: Officials assured that the investigation is ongoing and that efforts are being made to recover the defrauded money. The ED is committed to holding the perpetrators accountable and restoring investor confidence. The probe agency emphasized the need for public awareness regarding such fraudulent schemes to prevent future occurrences.

Impact and Public Reaction:The discovery of the cryptocurrency fraud has stirred significant public interest and concern, particularly among the investors who were duped. The ED’s actions are being closely watched as the case progresses, with expectations for swift and stringent measures against the fraudsters. The crackdown is seen as a critical step towards tackling financial crimes and protecting the interests of innocent investors.