ED attaches assets worth crores in case against multi-level marketing firm
ED attaches assets worth crores in case against multi-level marketing firm
The Enforcement Directorate (ED), Nagpur on Wednesday provisionally attached movable assets located in Nashik in the case of KBC Multi Trade Pvt Ltd & Ors under the Prevention of Money Laundering Act (PMLA), 2002.
The assets are valued at Rs 3.33 crore (having the current market rate of Rs 8.85 crore), the probe agency said.
The attached assets include gold bullion and jewellery and silver bullion acquired by the promoters Bhausaheb Chhabu Chavan, Arati Bhausaheb Chavanand and others, for using the funds acquired from the public by luring them with huge incentives and commissions on the investments received from them.
The ED initiated an investigation on the basis of multiple FIRs registered in Parbani, Nashik and other districts across Maharashtra under various sections of the IPC, 1860 against M/s KBC Multi Trade Private Ltd. and its promoters, Bhausaheb Chhabu Chavan and Arati Bhausaheb Chavan.
The investigations by the financial watchdog revealed that the Chavan family, along with co-accused principal agents of the company, hatched a conspiracy to lure people through an MLM (Multilevel Marketing) scheme run under the aegis of KBC Multi Trade Private Limited and KBC Club and Resorts Private Limited, promising attractive refunds on the investments made by people and duping them of more than Rs 200 crore.
Earlier, the ED had conducted search operations under the provisions of PMLA, 2002 on March 08, 2024 and March 11, 2024 at 11 official and residential premises in Nashik and Thane and placed various movable assets of the accused under restraint.
ED also provisionally attached movable and immovable properties valued at Rs 84.24 crore on March 19, 2024.
Furthermore, a search was carried out in four lockers held in NAMCO Bank, HDFC Bank and State Bank of India from June 10, 2024 to June 12, 2024, where the gold bullion and jewellery and silver bullion valued at Rs 3.33 crore, held in the name of the promoters and their benamidars were recovered and seized.
Further investigation is underway, the ED said.