Nagpur: ED Seizes ₹38.33 Cr Assets In ₹105 Cr MLM Scam Involving Shreesurya Investments

The Nagpur unit of the  Enforcement Directorate (ED)  has attached movable and immovable assets worth Rs 38.33 Crore in Nagpur, Amravati, Akola, and Madgaon districts, among other areas across Maharashtra and Goa, in connection with the Rs 105 crore Multi-level Marketing scam allegedly involving Samir Joshi's company, Shreesurya Investments, under the Prevention of Money Laundering Act (PMLA).

The attached assets include movable assets (Fixed Deposits) and immovable assets acquired by Samir Joshi, his firms, and his co-accused agents and accomplices. The financial probe agency said on Wednesday. The ED Nagpur Unit attached the assets on May 31st under the PMLA.

The ED probe is based on the First Information Report (FIR) registered by Nagpur Police under various sections of the IPC, which revealed that Samir Joshi, an agent of a stockbroker, defrauded and entrapped innocent members of the public by promising exorbitant returns through various schemes promoted by his company, Shreesurya Investments. Joshi enticed the public with false assurances, promising to double their investment within 15 to 28 months or provide a 50 percent annual interest on a quarterly basis, along with free foreign trips.

Additionally, Sameer Joshi disseminated false and misleading advertisements about the benefits of the scheme. With malicious intent, Joshi duped investors and misused public funds for the accumulation of properties in his name, his family members', and his business entities," the probe agency stated in their statement.

During the investigation, it was revealed that various commission agents, chartered accountants, and lawyers were employed by the Shreesurya Group in the course of their investment activities. These commission agents accepted a commission ranging from 3% to 7% on the investments made by the investors.

Furthermore, with the intent to deceive new and genuine investors and persuade them to invest in the various schemes floated by the Shreesurya Group, the co-accused commission agents organized "Investors Meet" events to gather a maximum amount of investment. Twenty-five such agents were identified as co-accused in the supplementary chargesheet filed by the law enforcement agency, and the properties derived by them from the proceeds of crime (PoC) have also been attached by the ED.

As per the chargesheets filed by the Law Enforcement Agency, a total of 1,267 investors were identified who were defrauded to the tune of approximately Rs. 105.05 Crore, which was ascertained as the total Proceeds of Crime (PoC) to date. In this case, the Securities and Exchange Board of India (SEBI) has also filed a Prosecution Complaint under section 24(1) of the SEBI Act, 1992 against Sameer Joshi.