ED attaches 124 bank accounts of eBiz.com promoters

Enforcement Directorate (ED) has attached assets worth ₹31.63Crore under the provisions of the Prevention of Money Laundering Act, 2002, (PMLA) in a Pyramid Style Multi-Level Marketing fraud case. The attached assets include interest accrued on the already attached 105 Fixed Deposits, Bank balances, Mutual funds and Gold jewelry found in the locker of the main accused Pawan Malhan, Managing Director of M/s eBiz.com Pvt Ltd and his son Hitik Malhan. Earlier, on 17.09.2019, ED had provisionally attached immovable properties purchased at ₹ 34.60 Crore and Bank balances amounting to ₹242.25 Crore lying in 124 different Bank accounts belonging to eBiz.com and its promoters.The 2019 provisional attachment order of ED for a total value of Rs 277.97 Crore was confirmed by the PMLA Adjudicating Authority and ED has already taken possession of the same.

ED initiated investigation based on the FIRs registered by the Telangana State Police against M/s eBiz.com Pvt Ltd and its Directors/Associates for cheating common public by propagating false promises of earning quick and easy money and inviting gullible public to become members of their Pyramid Scheme.

The promoters conducted mega conventions and flaunted their lavish lifestyle and used social media like Facebook pages to lure gullible investors. They had collected around Rs 1064 Crore from around 12 lac subscribers through a chain of agents spread across the country.

The funds so collected were illegally diverted into the personal accounts of the Directors, their family members and other associates under various expenditure heads including dividends, high salaries/incentives etc.

ED has already filed a preliminary prosecution complaint against the accused persons on 12.03.2021 before the Hon’ble Principal Special Sessions Judge, Ranga Reddy.

Second provisional attachment order is issued now to attach further assets worth ₹30.42 Crore lying in 105 accounts maintained in the name of the company, its two Directors and their family members and associates, Rs 64.94 lacs worth of Mutual Fund investments and Rs 55.74 lacs worth of gold jewelry. Thus, ED has attached further assets worth ₹ 31.63 Crore on 20.05.2021.