The Enforcement Directorate (ED) on Thursday said that they have carried out search operations against the promoters and directors of KBC Multi-trade Pvt Ltd across multiple locations in Maharashtra.
On March 8, the ED began search operations under the provisions of Prevention of Money Laundering Act (PMLA), 2002, at eight official and residential premises of the promoters and directors in Nashik and Thane. On March 11, a bank locker in Anand Nagari Sahakari Patsanstha Maryadit belonging to a person named Sanjay Panchariya was searched. During the search operation, documents related to 20 properties valued at ₹62 crore were seized.
Followed by the seizure, a freeze was placed on bank accounts with ₹16.6 crore in cash, demat account balance amounting to ₹44.61 lakh, and post office savings worth ₹5.56 lakh.
Further, the ED also seized ₹30.75 lakh worth of gold and diamond jewellery. A restraining order was also placed under Section 17(1A) of the PMLA on four lockers believed to contain the proceeds of the crime.
“The ED initiated investigation based on multiple FIRs registered by Maharashtra Police in Parbani, Nashik and other districts under various sections of IPC, 1860 against KBC Multi-trade Private Ltd. and its promoters, Bapu Chhabu Chavan, Bhausaheb Chhabu Chavan and Arti Bhausaheb Chavan. The Chavan family along with co-accused principal agents of the company hatched a conspiracy to allure people through an MLM (Multi-level Marketing) scheme run under aegis of KBC Multi-trade Private Ltd. and KBC Club and Resorts Pvt Ltd. promising public attractive refunds on their investment and duping them of more than ₹200 crore,” an ED official said.
The ED investigation revealed that the public were subscribed as members on payment of fees under various schemes propagated by KBC Multi-trade Private Ltd. and KBC Club and Resorts Pvt Ltd. with promises of binary and matrix commissions, awards, rewards and product gifts.
“The commission was incumbent upon all members to enrol more members as a portion of the subscription amounts was distributed among the members at the top of the pyramid. During the investigation, it was further revealed that Bapu Chhabu Chavan, Bhausaheb Chhabu Chavan and Arti Bhausaheb Chavan and other co-accused used the membership fees collected from the public for acquisition of immovable assets, gold jewellery and investment in shares. Further investigation is under progress,” the ED officials further said.
