ED arrests Ponzi scam mastermind for duping investors of Rs 600 crore in Mumbai

The central probe agency took Dalal into custody from judicial detention, where he was held following his arrest by the EOW. He was remanded to ED custody by the court.

In Short

• Amber Dalal lured 1,300 investors with high returns promise
• Funds used to buy properties, diverted to accomplices
• ED seized assets worth Rs 39 crore, total Rs 67 crore frozen

The Enforcement Directorate (ED) has arrested Amber Dalal, the proprietor of Ritz Consultancy Services, for allegedly running a Ponzi scheme that defrauded investors of more than Rs 600 crore.

A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors.

The probe began after the Mumbai Police's Economic Offences Wing (EOW) filed a First Information Report (FIR) against Dalal. He is accused of luring around 1,300 investors with promises of high returns, paying initial amounts to gain trust, and then absconding with the funds.

The central probe agency took Dalal into custody from judicial detention, where he was held following his arrest by the EOW. He was remanded to ED custody by the court.

According to the authorities, part of the funds collected were used to purchase properties and were diverted to various people, including the accomplice under ED's scanner. The scheme also used funds from new investors to pay returns to older ones rather than investing them as claimed.

The ED conducted searches in the case on June 21 and September 3 this year, seizing movable assets worth approximately Rs 39 crore. The total amount frozen or attached in the case now stands at Rs 67 crore.

The search operations unveiled details of a network of stockbrokers and investment advisors who brought clients in exchange for commissions.

Further investigation into the matter is underway.