The Enforcement Directorate (ED) on Monday said it has conducted searches at the premises in Noida belonging to State Secretary of Samajwadi Party, Uttar Pradesh, Dinesh Kumar Singh alias Dinesh Singh Gujjar on money laundering charges in the Bike Bot scam case.

 “During investigation, incriminating evidence against him has been found and seized from the searched premises in a Bike Bot Scam case,” the ED said in a statement.

 The ED initiated investigation on the basis of UP Police FIRs registered on the basis of complaints made by the investors of Bike Bot fraud committed by Garvit Innovative Promoters Ltd. (GIPL), Sanjay Bhati and other persons.

 The ED investigation revealed that in 2017, the accused Sanjay Bhati and others floated a lucrative investment scheme in the name of Bikebot. As per the scheme, a customer could invest in one, three, five or seven bike(s) which would be maintained and operated by the company and the investors would be paid monthly rental, EMI and bonus (in case of investment in multiple bikes).

 The ED investigation further revealed that funds collected were rotated in a fashion akin to a Ponzi scheme and were ultimately used in creation of assets in the name of the company and other persons.

 “The ED probe also revealed that Dinesh Singh Gujjar used his network to locate beneficiaries of the proceeds of crime generated through Bike Bot Scam and by flouting his relations with the ED officials, cast pressure or enticement on his victims to extract money which directly or indirectly was a part of the proceeds of crime,” the agency said.

 After search action, the ED arrested Gujjar on Friday and the Special Court granted his custody to the agency for five days till Wednesday. Further investigation is under progress, it added.