The Enforcement Directorate (ED) has attached assets worth ₹59.44 crore in connection with the Power Bank app fraud case allegedly involving Chinese nationals.
The properties belong to one Vaibhav Dipak Shah, Sagar Diamonds Private Limited, RHC Global Exports Private Limited, and their associates. The action has been taken under the Prevention of Money Laundering Act.
The ED initiated its investigation on the basis of various cases registered by the police in Uttarakhand, Delhi and Karnataka, under various provisions of the Indian Penal Code and the Information Technology Act.
According to the agency, it found that some Chinese nationals, as “part of a larger conspiracy” to cheat the Indian public, incorporated a number of shell companies in India with the help of Chartered Accountants/Company Secretaries and other Indian professionals.
“Further, various software applications (apps) namely Power Bank, Tesla Power Bank, EZ Plan etc., were floated on digital platforms like Google Play Store etc., to lure the gullible public in India into making investment in plans falsely assuring huge returns,” the ED said on Friday.
In the same case, the ED had earlier conducted searches and examined a large number of documents, which revealed that huge funds were siphoned off and sent overseas on the pretext of making payments for imports.
During the probe, the agency seized currencies and valuables worth ₹10.34 crore and froze bank accounts having a cumulative balance of ₹14.81 crore. “In the case, one provisional attachment order was also issued on February 6, 2022, attaching a sum of Rs. 4.92 crore. Three persons were arrested...and prosecution complaint was filed against the accused persons on April 25, 2023..,” the ED said.
Among the arrested accused is Anas Ahmed, who was a partner in H & S Ventures Inc and Clifford Ventures that allegedly collected about ₹84 crore from the victims. As alleged, he, along with his associates, promised to pay interest on a daily or weekly basis on investments through ‘Power Bank’ and other such apps. The entities were later closed down after collecting huge sums of money from the investors.
In June 2021, the Bengaluru Police had arrested 11 persons, including four from China and Tibet. The alleged mastermind in that case was also identified as Ahmed. His wife, a Chinese national named Hu Xiaolin, was among those arrested. She was later released on bail. That case was registered on a complaint against 13 companies.
The same month, the Cyber Cell of the Delhi Police had arrested 11 persons, including two Chartered Accountants, for allegedly cheating over five lakh people of more than ₹150 crore through the Power Bank and EZ Plan apps. The accused persons had floated about 110 shell entities for diverting the funds.
The Chennai Police had also registered a case in June 2021 based on several complaints alleging that investors were cheated via the Power Bank and Tesla Power Bank apps.
