The Enforcement Directorate (ED) on Friday conducted searches in as many as 14 premises in Surat SEZ, Ahmedabad and Mumbai in connection with an alleged Power Bank App fraud case.
“Directorate of Enforcement (ED) on Friday, conducted searches at as many as 14 premises pertaining to M/s. Sagar Diamond Limited, a BSE-listed company, M/s. RHC Global Exports Limited, their director namely Vaibhav Dipak Shah and their associates in Surat SEZ, Ahmedabad and Mumbai in Power Bank App fraud case,” the ED stated in a press release on Friday.
The searches were part of an investigation carried out by the central agency under the Prevention of Money-laundering Act, 2002, on an FIR filed by Delhi Police in connection with the alleged Power Bank App fraud.
Thousands of common people have been cheated through the application managed by Chinese nationals in connivance with their associates in India, which includes Vaibhav Dipak Shah and M/s. Sagar Diamond Ltd, the ED alleged.
“The searches revealed that proceeds of crime generated from the fraud have been routed and possessed by M/s. Sagar Diamond Ltd. and others. The number of manufacturing units of the entities at Surat SEZ was found involved in an exorbitant overvaluation of Import/Export of Diamonds, Gem Stones and other precious metals and siphoning of funds abroad in the garb of bogus imports. During the search, stock to the tune of Rs. Thousands of Crore shown in the books of account were found to be highly overvalued and having an actual value of Rs. 10 Crore approx. Synthetic ruby of insignificant value was shown as a precious gem,” the ED stated in its release.
During the searches, cash worth Rs 25 lakh, gold/diamond and other valuables amounting to Rs 10 crore, digital devices and documents related to bogus impors and exports have also been seized.
So far, three persons have been arrested in the case and a number of non-bailable warrants have been issued in the matter
Further investigation is underway in the case, the ED stated.