Ponzi schemes: CBI delivers 132 companies, ED 87 PMLA cases since 2019

The Central Bureau of Investigation (CCR) registered 100 cases involving 132 companies linked to Ponzi schemes in the past three and a half years, and made 21 arrests in this regard, the Lok Sabha Center reported on Monday.
A Ponzi scheme is a form of fraud that attracts investors and pays out profits to previous investors with funds from newer investors.
The Law Enforcement (ED) Directorate launched 87 money laundering investigations into such cases between 2019 and June 30, 2022. The Center informed Lok Sabha on Monday. Eight people have been arrested by ED under the provisions of the Prevention of Money Laundering Act 2002 (PMLA).
Serious Fraud Investigation Office (SFIO) has advised that it has been commissioned to investigate by the Ministry of Corporate Affairs (MCA) in the cases of nine cases (five in 2019-20, one in 2020-21 and three in 2021-22) involving 85 companies (36 in 2019-20, 16 in 2020-21 and 33 in 2021-22) in the past three years who have allegedly engaged in fraudulent chit fund, multi-level marketing (MLM) or Ponzi activities. “No arrests have been made in this regard by FIO“said Minister of State for Finance Pankaj Chaudhary
During this time, the Sachets Portal of RBI, which is the online platform for State Level Coordinating Committees (SLCCs) and allows the public to file financial fraud complaints, received 1,540 complaints related to non-reimbursement of deposits and money collected for various types of investment programs (964 in 2020-21, and 576 in 2021-22). Thanks to SACHET, which was initially launched on August 4, 2016, people were warned against fraudulent schemes and entities. From the portal, users can obtain information about entities authorized to take deposits, whether the entity is registered with a regulatory body, file complaints and also share information regarding illegal acceptance of deposits by unscrupulous entities.