ED’s Major Action Against Cyber Fraud: ₹5.23 Crore Assets Attached
The Enforcement Directorate (ED) has made significant strides in combating cybercrime by issuing a Provisional Attachment Order under the Prevention of Money Laundering Act, 2002 (PMLA). The order, dated December 3, 2024, targets assets worth ₹5.23 crore linked to Kunal Gupta, the owner of M/s Met Technologies Pvt Ltd, and his associate, Pawan Jaiswal. This case highlights the persistent issue of cyber fraud, with criminals leveraging international networks to amass illegal wealth.
What’s Included in the Attachment?
The attached properties include:
- 37 horses belonging to KG Stud Farm LLP, valued at ₹3.985 crore.
- Flats in Greenleaf Complex, Baguiati, Kolkata, valued at ₹1.08 crore.
These high-value assets underscore the scale of the fraudulent operations and the ED’s commitment to recovering proceeds of crime.
The Fraudulent Scheme: How It Worked
According to the ED’s findings, representatives of Met Technologies Pvt Ltd orchestrated a series of fraudulent activities targeting individuals across the USA, UK, and Australia. The schemes involved:
- Fake Tech Support: Scamming victims with false promises of technical assistance.
- Bogus Websites: Selling non-existent products and services.
- Fraudulent Loan Apps: Deploying counterfeit mobile apps to siphon money under the guise of loans.
Victims were coerced into making substantial payments, with proceeds allegedly funneled through a web of companies controlled by Gupta and his associates. These illicit funds were laundered into legitimate-seeming businesses, including hotels, clubs, and cafes
Timeline of Key Actions
- September 10, 2023: Kunal Gupta was arrested by the ED.
- November 7, 2023: Provisional Attachment Order worth ₹67.23 crore issued for various movable and immovable properties.
- November 16, 2023: Kolkata Sessions Court took cognizance of a Prosecution Complaint seeking punishment for money laundering offenses involving ₹67.33 crore.
- December 3, 2024: Provisional Attachment Order for ₹5.23 crore issued, targeting assets linked to cyber fraud.
The ED also seized ₹10.56 lakh in Indian and foreign currencies during raids, along with property documents valued at approximately ₹41.50 crore.
Implications of the Case
This case serves as a stark reminder of the growing menace of international cyber fraud networks. By attaching properties and prosecuting offenders under the PMLA, the ED reinforces its commitment to curbing financial crimes. The crackdown aims to disrupt the laundering channels and ensure that the proceeds of crime are confiscated, setting a strong deterrent for future offenders.
Legal Insights: Why PMLA Matters
The Prevention of Money Laundering Act, 2002, plays a pivotal role in combating financial crimes by:
- Enabling attachment and confiscation of proceeds from illegal activities.
- Empowering authorities to prosecute offenders involved in money laundering.
- Enhancing India’s compliance with global anti-money laundering standards.
Lessons for Taxpayers and Businesses
- Stay Vigilant: Ensure compliance with financial regulations to avoid legal scrutiny.
- Report Suspicious Activities: Promptly flag potential fraud to authorities.
- Secure Online Transactions: Protect against phishing and scam attempts.
Conclusion:
The ED’s proactive measures under the PMLA underline the importance of transparency and accountability in financial dealings. This case serves as a critical warning against cyber fraud while showcasing the robust mechanisms in place to safeguard public interests.