Officials of the Directorate of Enforcement (ED) arrested Misbahuddin S., partner in Injaz International, under the Prevention of Money Laundering Act (PMLA), 2002 for his alleged involvement in siphoning off and transferring huge funds by luring depositors with promises of high returns.
He was produced before the Special Court (PMLA), Bengaluru, and taken into custody till November 19.
The ED initiated money laundering investigation on the basis of an FIR registered against Injaz International and Associated Group located in Bengaluru under sections of Prize Chits and Money Circulation Schemes (Banning) Act, 1978 and Chit Funds Act, 1982 and under cheating by Wilson Garden Police Station, Bengaluru.
The CCB started investigating the scam, which is believed to be over ₹250 crore.
During the investigation, it was revealed that Injaz International is a partnership firm, where Suhail Ahamed Shariff and Misbahuddin are the two partners of the firm.
As per the FIR and investigation conducted, Injaz International accepted deposits from investors, cheated them and violated RBI guidelines. The firm had been allegedly running investment schemes by luring depositors with promises of high returns since 2016.
Injaz International routed money through multiple bank accounts and had neither filed any ITR returns nor done any audits. The firm collected huge funds from investors and siphoned off the collected amount to various individuals including its partners and related entity Injaz Builders and Developers, said the ED, adding that further investigation is under progress.