The Enforcement Directorate (ED) has provisionally attached movable and immovable assets valued at Rs 84.24 crore in various locations of Maharashtra and Rajasthan linked to a multi-level marketing (MLM) company, KBC Multitrade. The company is accused of duping several people to the tune of more than Rs 200 crore.
The attached assets include movable and immovable properties, benami properties, DEMAT accounts, Post Office savings, silver and diamond jewellery/bullion, and bank account balances. These assets were acquired by KBC Multitrade promoters Bhausaheb Chhabu Chavan, Aarti Bhausaheb Chavan, and others.
The investigation initiated by the probe agency stems from multiple FIRs lodged in various districts of Maharashtra against the company and its promoters. They are accused of hatching a conspiracy to lure people through a multi-level marketing scheme, promising lucrative returns.
Under the MLM scheme, individuals were enlisted as members upon payment of fees under various packages and schemes, with promises of commissions, awards, rewards, and product gifts. However, despite the promises, the company lacked any genuine business activity.
The Enforcement Directorate alleges that the money collected from the public was used by the accused to buy immovable and movable assets, such as gold jewellery and investment in shares. Properties were maintained both in their own names and in the names of their relatives acting as benamis.
Previously, the probe agency restrained a bank account with Rs 16.6 crore deposited, demat account balances amounting to Rs 44.61 lakh, and post office savings worth Rs 5.56 lakh belonging to one of the accused. Additionally, Rs 30.75 lakh worth of gold and diamond jewellery was seized.
The investigation into the matter is ongoing as authorities seek to hold the accused accountable for their alleged fraudulent activities.
