ED gets custody of Sandeep Kumar in Falcon Fraud case
ED investigation revealed that in reality, no business of invoice discounting was carried out
By Newsmeter Network
Representational Image
Hyderabad: The sleuths of the Enforcement Directorate have been granted custody of Sandeep Kumar in the Falcon Fraud case.
Sandeep Kumar, who was arrested on July 31 by the ED, is said to be involved in the money laundering case booked against the Capital Protection Force.
What is the case about?
ED initiated an investigation based on three FIRs registered by the Economic Offence Wing, Cyberabad, against Capital Protection Force Pvt Ltd, Amardeep Kumar and others.
It is alleged that Amardeep Kumar, Capital Protection Force and others fraudulently cheated gullible investors on the pretext of high returns on their investments.
Modus operandi
Capital Protection Force, in the name and style of āFalcon invoice discounting schemeā, allegedly lured investors on the pretext of providing funds for invoice discounting in exchange for promising returns based on the invoices discounted.
But the fraud came to light when they failed to repay their invested amounts. Amardeep Kumar was the mastermind behind the scam, and he developed the Falcon Invoice app to receive deposits from the investors.
Investors cheated of Rs 792 crore
ED investigation revealed that in reality, no business of invoice discounting was carried out, and the accused cheated investors to the tune of Rs 792 crore (approx.).
The investigation also revealed that Proceeds of Crime (POC) were used as an investment in equity shares of several companies; loans to companies; purchase of an aircraft; conspicuous consumption in casinos; purchase of immovable properties in the name of Amardeep Kumar and his family members, etc.
The ED investigation revealed that out of the POC in the account of Capital Protection Force, Rs 4.85 crore (approx.) was transferred to the bank account of Sandeep Kumar, the brother of the main accused, Amardeep Kumar.
Sandeep Kumar was an active member of the cartel and actively involved in the activities related to the companies owned, managed and controlled by his brother Amardeep Kumar.
Crime proceeds redirected
Investigation also revealed that Sandeep Kumar was a director in Falcon Capital Ventures Private Limited and Swastik Ghee Private Limited, which received POC from Capital Protection Force Private Limited to the tune of Rs 5.74 crore.
Further investigation revealed that Sandeep Kumar utilised the POC for business activities in his companies or for the purchase of immovable properties.
ED had earlier attached movable and immovable properties worth Rs 18.14 crore, which included properties worth Rs 7.65 crore belonging to Sandeep Kumar.
