The Enforcement Directorate (ED) on Thursday arrested an individual, recognized as Misbahuddin S, in reference to a case of transferring large funds by luring depositors with the promise of excessive returns.
The accused was produced earlier than the Prevention of Cash Laundering Act (PMLA) court docket in Bengaluru and remanded to ED custody until November 19.
The Enforcement Directorate, a central company probing cash laundering and different financial offences, initiated an investigation within the case on the idea of an FIR registered towards Injaz Worldwide and an related group in Bengaluru.
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The case was registered by the Wilson Backyard Police Station, Bengaluru Metropolis below sections of the Prize Chits and Cash Circulation Schemes (Banning) Act, 1978; Chit Funds Act, 1982 and Part 420 of the Indian Penal Code (IPC).
In the course of the investigation, it was revealed that Injaz Worldwide is a partnership agency and Suhail Ahamed Shariff and Misbahuddin S are its two companions.
As per the FIR and the probe within the case, Injaz Worldwide had been allegedly working funding schemes by luring depositors with the promise of excessive returns, since 2016.
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It’s alleged that the agency obtained deposits, believed to be in extra of ₹250 crores, cheated them and violated tips laid down by the Reserve Financial institution of India (RBI).
It allegedly routed cash by means of a number of financial institution accounts and had neither filed any ITR returns nor performed any audit.
It’s additional alleged that Injaz Worldwide raised large funds from buyers and siphoned off the quantity to a number of people, together with its companions and associated entity — i.e. M/s. Injaz Builders and Builders, the FIR said.