The Directorate of Enforcement (ED) has searched five locations of Hindustan Infracon India Limited in Bengaluru and Mandya, and related persons in connection with a Ponzi scheme under the Prevention of Money Laundering Act (PMLA).
Earlier, ED had registered a case of money laundering based on an FIR registered in Vijayanagar police station in Bengaluru against Hindustan Infracon, its promoters and directors for cheating investors of ₹191.54 crore.
Investigation by the ED revealed that the promoters and directors of Hindustan Infracon lured prospective investors by offering high interest rates on various deposit schemes.
The company had collected ₹389 crore from around 7.18 lakh investors. However, the company did not give the interest amount due to investors, or return the deposits.
The company failed to return ₹199 crore to investors, according to the ED.
The search of various premises connected with the company and its officials resulted in the seizure of documents and records of cash transactions. Further investigation is in progress.