The Central Bureau of Investigation (CBI) has registered 100 cases involving 132 firms relating to Ponzi schemes in the last three and half years since 2019, while the Enforcement Directorate (ED) launched 87 money laundering inquiries in such cases during the period, the Centre informed Lok Sabha on Monday.
As per definition, a Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. From 2019 to 30 June 2022, the CBI arrested 21 persons in its investigation of 100 First Information Reports lodged while probing Ponzi schemes, and the ED nabbed eight accused under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA).
While sharing inputs in the Lok Sabha while replying to queries of five MPs, Minister of State for Finance Pankaj Chaudhary said that the government and enforcement agencies have taken action against those running unauthorised schemes.
Citing information received from enforcement agencies and regulatory bodies, the Minister said “CBI has registered 100 cases relating to Ponzi Schemes during the years 2019 to 2022 (up to 30 June 2022), involving 132 companies/ firms. 21 persons have been arrested by CBI in this regard.”
“ED has investigated 87 cases related to Ponzi Schemes under the provisions of the PMLA during the last three years and the current year. Eight persons have been arrested by ED in this regard.”