ED arrests 2 ‘bsconding Ponzi accused from Gujarat
The Enforcement Directorate on Friday said it arrested two “absconding” accused in an alleged Rs 180 crore digital Ponzi scheme case from Gujarat’s Bharuch district, where they were “hiding” after returning from Dubai via Nepal. Sudhir Dalsukhbhai Kotadiya and Umang Santibhai Kotadiya were taken into custody on March 11 under the provisions of the Prevention of Money Laundering Act (PMLA).
They are accused in an investigation relating to a “fraudulent” digital investment scheme (Ponzi) operated through QFON App Limited and other associated entities, the central probe agency said in a statement. A Special PMLA court in Mumbai sent the two to ED custody until March 20, according to the agency.
The ED case stems from a December 2024 FIR filed by the Thane Police against the two accused and others named Jaysukh Sakhariya and Umang Kotadiya, among others, for operating a digital Ponzi investment scheme.
The agency claimed that the two arrested accused were “absconding” and were “deliberately” evading investigation. They fled to Dubai (UAE) and later returned to India via the Nepal route. After sustained efforts and intelligence-based tracking, the ED traced and apprehended the accused persons. They were arrested after raids conducted in Bharuch, the ED said.
It is alleged that the accused “lured” innocent investors from Gujarat and Maharashtra to deposit funds in the said Ponzi scheme on the promise of returns ranging from two to 10.5 per cent. They claimed that returns would be generated through online advertisement viewing and application-based digital activities.
Probe found, the ED said, that funds collected from new investors were used to pay returns to earlier depositors, while a “substantial” portion of the funds was siphoned off by the accused.
The funds were routed through multiple bank accounts belonging to firms, entities and individuals associated with the accused persons, and some funds were also transferred in cash through Angadiya operators (illegal cash transporting agents).
The agency has quantified the proceeds of crime in this case at Rs 183 crore.
