Brief
Enforcement Directorate arrests two in Rs 1.42‑billion Chennai investment fraud
The two were taken into custody under the PMLA after an investigation linked them to schemes promising high export returns.
By Felo News Desk · Published
Chennai police, acting on a Enforcement Directorate (ED) operation, arrested S Naveen Kumar and S Muthuselvam on Tuesday for alleged money‑laundering tied to an investment fraud that raised about Rs 1,417.86 crore from 35,759 investors, the agency said.
The duo were produced before the Special PMLA Court, which ordered 15 days of judicial custody. The ED’s probe, launched after a District Crime Branch FIR in Erode, identified investment schemes named UNI, FNP, FAP and UNR operating under Unique Exports, East Valley Agro Firms and related entities. Investors were enticed with promises of high returns from agricultural exports that never materialised.
Banking analysis showed roughly Rs 719 crore deposited in accounts linked to Unique Exports, with Rs 390.90 crore recorded as salary payments for only four staff and Rs 79.56 crore logged as onion purchases that did not occur. The ED also noted that Muthuselvam received about Rs 12.72 crore against a Rs 42.10 lakh personal investment.
Earlier, the ED had searched nine premises connected to the suspects on June 16‑17 under Section 17 of the PMLA, and investigations continue.
Key facts
- The Enforcement Directorate arrested S Naveen Kumar and S Muthuselvam in Chennai. (newindianexpress.com)
- The alleged fraud mobilised about Rs 1,417.86 crore from 35,759 investors. (newindianexpress.com)
- The suspects were placed in 15 days’ judicial custody by a Special PMLA Court. (newindianexpress.com)
- Around Rs 719 crore was found in bank accounts linked to the scheme. (newindianexpress.com)
Sources
- [1] newindianexpress.com — originally reported as “ED arrests two in Rs 1,418 crore investment fraud case in Chennai”
