Enforcement Directorate Investigates Dubai-Based Businessman in ₹100 Crore Fraud Case

20 Nov, 2023

Enforcement Directorate Investigates Dubai-Based Businessman in ₹100 Crore Fraud Case

The Enforcement Directorate (ED) initiated a money-laundering case against a Dubai-based businessman and his associates, stemming from a ₹100 crore cheating case filed by Pune police.

The accused, led by Dubai-based businessman Vinod Khute, allegedly amassed ₹100 crore through investment schemes, diverting the funds overseas through hawala channels. Investors were enticed with promises of 2-3% monthly returns. Khute, along with his relatives, purportedly controlled the VIPS Group of Companies and Global Affiliate Business. They attracted more investors through promises of high returns on forex trading, subsequently channeling the amassed funds abroad through hawala transactions. The alleged fraudulent activities began in 2020.

ED's involvement was triggered by earlier findings from its Foreign Exchange Management Act (FEMA) probe against the accused entities. Following this, the ED conducted searches at premises linked to VIPS Group of Companies and Global Affiliate Business, leading to cash and bank balance seizures totaling ₹28.60 crore. The assets seized/frozen during the investigation will be provisionally attached in connection with the money-laundering probe.

Investigations revealed Khute's alleged orchestration of illegal trades, cryptocurrency exchanges, wallet services, and forex trading through Kana Capital Limited. Funds amassed from investors were reportedly funneled through hawala channels to foreign countries. The modus operandi involved channeling collected funds through shell companies in Maharashtra.

Khute's strategy revolved around luring investors to shell companies, offering equivalent USD balances on Kana Capital Limited's platform for various trades, including forex and commodity trading. Funds were allegedly transferred out of India through hawala operators, while the trading platform offered solutions to clients for trading at international stock markets.

Global Affiliate Business also marketed Kana Capital's brokerage business, facilitating forex, crypto, and stock trading for clients. The company enticed investors with promises of high returns and conducted training programs via Zoom.