The Enforcement Directorate (ED) has conducted raids at numerous locations in Maharashtra associated with KBC Multitrade, a Multi-level Marketing (MLM) company implicated in defrauding individuals to the tune of over 200 crore rupees, officials disclosed on Thursday.
Search operations under the Prevention of Money Laundering Act (PMLA) were carried out on March 8 and 11 at the official and residential premises of KBC Multitrade Private Limited in Nashik and Thane, Maharashtra.
The promoters of KBC Multitrade, namely Bapu Chhabu Chavan, Bhausaheb Chhabu Chavan, and Arti Bhausaheb Chavan, along with the company’s principal agents, are alleged to have orchestrated a scheme enticing people through multi-level marketing promises of high returns.
They purportedly amassed over 200 crore rupees in investments from the public, who were induced to become members by subscribing to various packages and schemes.
According to the central probe agency, the funds obtained from the public were utilized by the accused to acquire immovable and movable assets, including gold jewellery and investments in shares. Properties were registered both under their own names and under the names of relatives acting as proxies.
During the raids, documents pertaining to 20 properties valued at 62 crore rupees were seized by the Nagpur unit of the Enforcement Directorate. Additionally, the agency restrained a bank account containing 16.6 crore rupees, demat account balances totaling 44.61 lakh rupees (utilized for stock trading), and post office savings amounting to 5.56 lakh rupees.
The investigation also led to the seizure of gold and diamond jewellery worth 30.75 lakh rupees.
Furthermore, one bank locker was raided, and four lockers suspected to contain embezzled funds have been sealed. The Enforcement Directorate launched its probe based on multiple FIRs lodged in various districts across Maharashtra against the company, its promoters, and directors. The investigation is ongoing.