The Enforcement Directorate on Friday launched its first-ever search operation in the Leh Ladakh region. ED Srinagar is conducting the operation under the provisions of the Prevention of Money Laundering Act (PMLA) in a fake cryptocurrency business run by M/s A R Mir & others.
According to the information, the probe agency has been searching 6 premises related to the case in Leh, Jammu and Sonipat. Thousands of investors had invested their money in a cryptocurrency named 'emoillent coin'. However, they neither got the return nor the currency. According to the information, it is alleged that 2,508 investors deposited a collective amount of over Rs 7.34 crore. These funds were laundered by the business' promoters to purchase land assets in Jammu.
What is the case?
The case stems from a March 2020 FIR registered in Leh and some other complaints filed in Jammu and Kashmir (J-K) against Mir and Ajay Kumar Choudhary. The ED has covered the promoters of the fake currency business under the search operation. In their FIR, Leh Police stated that a committee formed by the local district magistrate against Mir and his agent has conducted an inquiry into the "fake" cryptocurrency business (Emollient Coin Limited) from an office located at the Anjuman Moin-Ul-complex, opposite SNM Hospital, in Leh.
As per FIR, the committee sealed the office during the inquiry on charges of "cheating many innocent individuals by assuring them to double their investment". According to ED officials, the accused used to lure people of Ladakh and other places to purchase "Emollient Coin" using cash or transferring money into bank accounts.
Money used to buy land under real state firm
The probe agency stated that the depositors were also duped in the name of "Bitcoins" on the pretext of up to 40 per cent returns with a lock-in period of 10 months. The company was incorporated in September 2017 and had its registered office in London. In India, the company had two promoters in India -- Naresh Gullia and Channi Singh. The company was "deliberately" dissolved in March 2019, and Mir along with Choudhary launched a real estate business and acquired lands in Jammu from the funds generated by the fake cryptocurrency trade, according to the probe agency.
(With PTI Inputs)
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