ED arrests two in Rs 1,417 crore export investment money laundering case
The Enforcement Directorate has arrested two key operatives in an alleged Rs 1,417.86 crore money-laundering case involving nearly 35,759 investors. The agency alleged that fraudulent export investment schemes routed investor funds through over 100 bank accounts linked to associates and entities
Chennai: The Directorate of Enforcement, Chennai, has arrested two key operatives in connection with a massive Rs 1,417.86 crore money-laundering case that allegedly defrauded nearly 36,000 investors under the guise of export investments, the agency said.
The arrested individuals, S Naveen Kumar and S Muthuselvam, were taken into custody on September 29 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, the ED’s Chennai Zonal Office-II said.
They were subsequently produced before the Special Court for PMLA cases, which remanded them to judicial custody for 15 days.
The ED’s money-laundering probe stems from a First Information Report (FIR) originally registered by the District Crime Branch, Erode, under the Prevention of Money Laundering Act and the Tamil Nadu Protection of Interests of Depositors (TNPID) Act.
According to agency officials, the duo, along with their associates, floated fraudulent investment schemes titled “UNI”, “FNP”, “FAP” and “UNR” under the business names of M/s Unique Exports, East Valley Agro Firms and other connected entities.
Investors were lured with promises of lucrative returns allegedly generated from agricultural export profits. However, financial analysis revealed that the firms undertook virtually no substantial export business and were operating purely as a financial trap, the agency said in a release on Thursday.
Around Rs 1,417.86 crore was mobilised from approximately 35,759 investors across the region.
Investigations uncovered that over Rs 719 crore was deposited into various accounts linked to Unique Exports, with investor funds systematically routed and layered through more than 100 bank accounts held by associated firms, family members and close aides.
Naveen Kumar, the proprietor of Unique Exports and alleged mastermind of the scam, personally controlled the banking operations and fund movements. Investigators found that Rs 390.90 crore was falsely recorded as salary payments, despite the firm employing only four staff members.
Another Rs 79.56 crore was falsely recorded as purchases of onions and other agricultural commodities without any physical trade taking place — a tactic allegedly used to disguise illicit transfers as business expenses.
Muthuselvam allegedly played a key role in designing the schemes and recruiting investors. The ED revealed that despite investing just Rs 42.10 lakh himself, Muthuselvam siphoned off Rs 12.72 crore in returns, referral bonuses and commissions. He routed funds through his personal accounts and entities such as M/s Dhanyasree Enterprises and M/s Universe369 Infra Private Limited.
The arrests follow search operations conducted by the ED at nine connected premises on June 16 and 17 under Section 17 of the PMLA.
Further investigation into the network and asset tracing remains underway, the Enforcement Directorate said.
