The Enforcement Directorate (ED) has recently frozen bank balances amounting to ₹8.5 crore and seized cash totaling ₹12.5 lakh during searches conducted across Mumbai and three other cities. These actions are part of an ongoing money laundering investigation linked to an alleged investment fraud involving the Power Bank app, Tesla Power Bank app, and Ezplan app.
Findings of the Investigation
The ED’s investigation uncovered that a group of Chinese nationals, in collaboration with Indian professionals, allegedly set up shell companies in India. These entities were used to launch investment-scheme apps on digital platforms, promising high returns to deceive unsuspecting investors. During the searches, the ED also confiscated several incriminating documents and digital devices in addition to the seized funds and cash. The searches were carried out in Mumbai, Delhi-National Capital Region, Ahmedabad, and Junagadh, in accordance with the Prevention of Money Laundering Act.
Entities and Individuals Under Scrutiny
The entities and individuals targeted in these searches include:
- M/s. Dev Enterprises, operated by Viplul Joshi
- M/s. Divyam Infracon Private Limited, led by director Chothani Gobarbhai
- M/s. Tanvi Gold Private Limited, directed by Surendra Chaplot
- M/s. Capital King Management Private Limited, directed by Chirag Patel
This investigation is based on various First Information Reports filed by the Uttarakhand police, Special Cell (Delhi Police), and Karnataka Police, under multiple sections of the Indian Penal Code and the Information Technology Act, 2000.
Broader Conspiracy and Operations
The ED’s investigation suggests that the implicated Chinese nationals were part of a larger conspiracy to defraud the Indian public. They reportedly used local professionals, including chartered accountants and company secretaries, to establish multiple shell companies. These companies launched various software applications, such as the Power Bank App, Tesla Power Bank App, and Ezplan, on platforms like the Google Play Store to lure Indian investors with false promises of substantial returns.
Previous Seizures and Legal Proceedings
In previous operations, the ED discovered that the suspects had allegedly diverted significant funds abroad, disguising them as proceeds from fictitious imports and logistics services. The ED seized currencies and valuables worth ₹10.34 crore and froze bank accounts holding ₹14.81 crore. To date, the ED has issued two provisional attachment orders—one in February 2022 and another in October 2023—resulting in the attachment of properties and bank accounts worth ₹64.36 crore. Three individuals have been arrested in this case, and a chargesheet was filed against the accused in April 2023 before a trial court.
