New Delhi, January 23
Directorate of Enforcement (ED) has arrested Jawahar Lal Shah on under the provisions of Prevention of Money Laundering Act (PMLA), 2002 in a Ponzi scheme case.
ED initiated investigation on the basis of FIR registered by Bihar Police under sections of IPC, 1860 against M/s Mahua JLG Development Cooperative Society Ltd, Jawahar Lal Shah and others.
ED investigation revealed that Jawahar Lal Shah in connivance with his associates formed various companies/co-operative societies namely Mahua Joint Liability Group Dairy Products & Agro Industries Ltd, Mahua Joint Liability Group Development Cooperative Society Ltd, Mahua Gavy Prasankaran Swavlambi Sahkari Samiti Limited etc. and collected money around 25-100 c rore from public with assurance to pay higher returns.
The Companies/Co-operative Societies failed to pay the assured return to the investors on maturity and shut down their offices. The the investor’s funds were layered and laundered and diverted to the accounts of Jawahar Lal Shah and his associated persons/entities and part of which has been utilized in acquiring immovable properties, officials said.
During investigation, searches were conducted at the premises linked with Jawahar Lal Shah and other associates at five locations in Bihar, West Bengal, Delhi and Uttar Pradesh, which resulted in recovery and seizures, officials added.
