The Enforcement Directorate (ED) conducted raids across multiple locations in Maharashtra connected to KBC Multitrade, a Multi-level Marketing (MLM) company accused of defrauding over 200 crore rupees from several individuals. The searches, conducted under the Prevention of Money Laundering Act (PMLA) on March 8 and 11, targeted the official and residential premises of the company in Nashik and Thane.
The promoters of KBC Multitrade Private Limited, namely Bapu Chhabu Chavan, Bhausaheb Chhabu Chavan, and Arti Bhausaheb Chavan, along with the company's principal agents, are alleged to have orchestrated a scheme to entice people through a multi-level marketing program, promising substantial returns. They purportedly amassed investments exceeding Rs 200 crore from the public by enrolling them as members through various fee-based packages and schemes.
According to the central probe agency, the funds collected from the public were utilized by the accused to acquire immovable and movable assets, including gold jewelry and investments in shares. Properties were allegedly held in their names and in the names of relatives acting as proxies.
During the raids, documents about 20 properties valued at Rs 62 crore were seized by the Nagpur unit of the Enforcement Directorate. Additionally, a bank account containing Rs 16.6 crore, demat account balances totaling Rs 44.61 lakh, and post office savings worth Rs 5.56 lakh were restrained. The agency also confiscated gold and diamond jewelry valued at Rs 30.75 lakh.
Furthermore, one bank locker was searched, and four lockers suspected of containing ill-gotten gains were sealed.
The Enforcement Directorate initiated its investigation based on multiple First Information Reports (FIRs) filed in various districts across Maharashtra against the company, its promoters, and its directors.
The probe into the matter is ongoing, with authorities continuing to gather evidence and pursue further leads.
