ED raids 3 cities of UP over ₹300 crore fraud in Maxizone ponzi scheme. Searches were conducted at 20 locations in Ghaziabad, Noida and Meerut. Its purpose is to collect evidence of money laundering.
Lucknow: The Enforcement Directorate (ED) on Thursday launched search operations at around 20 locations in three cities of Uttar Pradesh in the Maxizone Ponzi scheme case. The promoters of the scheme allegedly defrauded investors of more than Rs 300 crore by promising them huge profits, officials said. These raids are being conducted in Ghaziabad, Noida and Meerut of Uttar Pradesh since Thursday morning on the basis of some information received about the suspects and accused related to the case.
Officials said the agency’s Ranchi zonal office is carrying out the search operation in collaboration with Uttar Pradesh Police. The aim of these raids is to collect digital evidence, financial records and possible links to money laundering activities. Multiple teams conducted simultaneous searches at residential and commercial premises associated with the accused, senior officials, employees and other suspected associates.
According to ED investigators, the investigation has revealed that Maxizone promoters lured thousands of investors by promising them unrealistic profits. Fake documents and manipulated financial projections were allegedly used to build trust. “When a huge amount was deposited, the accused allegedly fled with the money.” The agency suspects that a large part of the money was diverted through shell companies and layered through bank accounts to hide its source.
Both the promoters are currently in judicial custody in connection with the main offense registered earlier by the police. ED officials are also probing whether the funds collected were invested in real estate, luxury vehicles or foreign holdings. The agency is expected to record statements of several people associated with the financial functioning of the company as part of its investigation under the Prevention of Money Laundering Act (PMLA).
The search is still ongoing, and officials said further arrests, asset attachment and recovery action may be taken depending on the evidence gathered. Officials also said that the information gathered from today’s operation will play an important role in establishing the full scale of the alleged fraud and the money trail.