The Enforcement Directorate has arrested two people in Chennai as part of a money-laundering investigation linked to an alleged investment fraud involving approximately ₹1,417.86 crore.
The agency identified the arrested individuals as S. Naveen Kumar and S. Muthuselvam. According to the Enforcement Directorate, the suspected scheme collected money from around 35,759 depositors through investment programmes that allegedly promised high returns from agricultural export activities.
Both men were arrested under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, and were subsequently produced before the Special Court dealing with PMLA cases.
The court reportedly sent them to 15 days of judicial custody while investigators continue tracing the movement of the funds.
Investment Schemes Promised Returns From Farm Exports
According to the agency's allegations, Naveen Kumar, Muthuselvam and their associates operated several investment schemes using names including UNI, FNP, FAP and UNR.
The schemes were allegedly promoted through companies including Unique Exports and East Valley Agro Firms.
Potential investors were reportedly told that their money would be used to support agricultural trade and international shipments of farm products. The schemes allegedly attracted participants by promising substantial returns linked to profits from these activities.
The investigation is now examining whether the business model described to investors reflected actual commercial operations.
ED Questions the Existence of Genuine Export Activity
The agency's scrutiny reportedly found indications that the companies connected with the schemes carried out little or no genuine export business.
Despite the alleged absence of sufficient legitimate trading income, the entities continued collecting deposits from investors.
According to the ED's investigation, the total amount collected across the suspected network reached approximately ₹1,417.86 crore, involving tens of thousands of depositors.
The agency is examining financial records to determine how the money was collected, transferred and subsequently used.
Investigators Trace the Movement of Deposited Funds
A major focus of the investigation is the financial trail following the collection of money from investors.
Investigators are examining bank accounts, company records, transaction statements and inter-company transfers to identify where the funds moved after entering the suspected investment network.
The ED is also looking into whether intermediary companies or other corporate structures were used to move or conceal the proceeds.
The ultimate beneficiaries of the suspected transactions are yet to be established through the ongoing investigation.
Two Accused Remain in Judicial Custody
After their arrest, both accused were presented before the designated PMLA court.
The court's decision to place them in judicial custody allows the investigation to continue while authorities examine the broader financial network associated with the alleged scheme.
The ED is expected to examine the involvement of other individuals and entities as investigators reconstruct the flow of funds and determine the responsibilities of different participants.
Investigation Into the Alleged Fraud Continues
The case involves a large number of alleged depositors and a substantial amount of money, making the financial trail a central part of the investigation.
Authorities are examining the role of the companies associated with the schemes, the claims made to investors, banking transactions and possible diversion of funds.
The allegations have not been finally established by a court. The ongoing proceedings and financial investigation will determine how the money was handled and whether other people or entities were involved.
For businesses and organisations reviewing complex financial transactions or potential irregularities, Financial Investigation can form part of a broader risk-review process.