Latest news with #BanningofUnregulatedDepositSchemesAct
Time of India
27-06-2025
- Business
- Time of India
EOW challenges Buds court order
T'puram: Economic offence wing (EOW) of crime branch approached the high court, challenging the Buds court's order that refused to take cognizance under Section 3 of the Buds Act against the accused in the BSNL Engineers Cooperative Society deposit fraud. Tired of too many ads? go ad free now Recovery proceedings against the accused can be initiated only if section 3 of the Banning of Unregulated Deposit Schemes Act (Buds Act) withstands. Section 3 bans the operation of unregulated deposit schemes and prohibits deposit takers from promoting, operating, or accepting deposits. The accused cheated hundreds of people by offering interest on deposits on the grounds that the society was registered under the registrar of cooperative societies and its businesses were regulated by the registrar. Since it was a regulated business, section 3 would not stand, observed the Buds court. It was also observed that the issues of such societies can be raised with the Buds Court by the regulator of such societies. In such situations, Sections 4 and 7 of the Buds Act will stand, not Section 3. The probe agency challenged this at the HC stating that the business of the society was fully unregulated as the accused flouted all the norms of the byelaws and cooperative rules. The court will consider the plea on July 2. The depositors also have filed an impleading petition. TNN
Hindustan Times
30-05-2025
- Business
- Hindustan Times
Torres fraud: Mapping the money trail
MUMBAI: The money laundering investigation into the Torres Jewellery fraud has revealed how the key accused used codes, software applications and instant messaging to communicate with each other, move money around, and transfer large sums to the masterminds. Torres Jewellery, whose holding company was Platinum Hern Pvt Ltd, had lured small investors to buy into its fraudulent investment schemes by selling low-value synthetic moissanite stones as high-value gemstones. It also promised exaggerated returns on its investment schemes, using misleading advertisements, fake bonuses and a Ponzi scheme to entice potential victims. The Enforcement Directorate (ED), which on May 22 charge sheeted 13 individuals and entities in the case, has estimated the fraud at ₹177.11 crore, relying on evidence or records that relate to Platinum Hern's finances and accounts, including transactions of its main showroom in Dadar, one of its five showrooms in the Mumbai Metropolitan Region (MMR). The key accused in the case are: Alpesh Khara, Sagar Mehta, Oleksandr Zapichenko alias Alex, Olena Stoian, Victoria Kovalenko, Tazagul Khasatova alias Tanya, Lallan Singh, Tausif Reyaz, Abhishek Gupta and Savesh Surve. They have been booked under sections relating to cheating and criminal breach of trust of the Bharatiya Nyaya Sanhita (BNS); the Maharashtra Protection of Interest of Depositors Act, and the Banning of Unregulated Deposit Schemes Act. Platinum Hern allegedly collected unauthorised cash deposits without the approval of the Reserve Bank of India (RBI), showing only ₹2.10 crore in its bank accounts, the ED said in its chargesheet. The ED's investigation also revealed that Platinum Hern had developed an internal software domain, called ' All the senior cashiers in all the Torres showrooms, along with employees and key managerial staff, were given access with a user ID and password. The software was allegedly used to store details of banking transactions, incoming cash and encashment transactions. It was also designed to facilitate encashment through a unique code-based authentication system, according to ED sources. The codes were allegedly sent to individuals desiring cash encashment through Telegram, an instant messaging app, according to the ED. An investigation into the unique codes revealed the alleged existence of a Telegram group named 'Cash Counter 1', through which the management used to send specific codes to authorise cash disbursements. However, this Telegram group has been deleted by the administrator, rendering the data irretrievable, according to the ED. The investigation also revealed that daily reports sent by senior cashiers to management to track daily sales, income and expenses, including the delivery of cash to specific persons, were found in another alleged Telegram group called 'Record to Report', where senior cashiers of Dadar showroom were members. The information shared within this group, did not cover all working days of a week but was confined to a few specific dates. Further, WhatsApp chats among a few accused persons and the Dadar showroom cashiers allegedly consistently used the term 'Code 2' as an internal trigger for cash pick-ups, the ED's probe found. The alleged chats were for the purpose of collection of cash from the showroom at the behest of the management of Platinum Hern. According to the ED, two key accused, both Ukrainians – Oleksandr Zapichenko alias Alex and Olena Stoian – were the key architects of the financial structuring and laundering operations. Both have fled the country. Another accused, Alpesh Khara, allegedly helped Alex convert the cash collected from customers into a cryptocurrency called 'USDT', which was then credited to digital wallets associated with individuals known to Alex. Another accused, Lallan Singh, through his proprietary concerns, allegedly transferred over ₹13 crore to bank accounts of Platinum Hern as fake investments, after accepting cash from Alex, which was generated through a co-accused against crypto-currency. 'His role was central in laundering illicit funds and creating a false front of legitimate business activity for the company,' an ED source said. He added that the agency is making continued efforts to trace further proceeds of the crime.
Time of India
30-05-2025
- Time of India
Police invoke Buds Act in Farmfed deposit fraud
T'puram: Museum police on Friday invoked Buds Act (Banning of Unregulated Deposit Schemes Act) against the accused in the multi-crore deposit fraud surrounding Farmfed (Southern Green Farming and Marketing Multi-State Co-operative Society). Offering 12.5% interest on deposits, the accused cheated hundreds of depositors. A fraud worth Rs 250 crore took place, said the probe team. By invoking Buds Act, police will be able to recommend attaching the wealth owned by the accused. Farmfed chairman Rajesh Chandran Pillai, 47, and managing director Akhil Francis, 42, were arrested and a search is on for the other accused: Dhanya, Shiny, Princy Francis and Mahavishnu. The other accused were board members of the society. Police registered two more cases on Friday over the fraud, bringing the total number of cases registered to five. Police moved a custody application for the accused before chief judicial magistrate court on Thursday. The court will consider the plea on Monday. The accused were running the society's office at Sasthamangalam and they recruited agents to lure people into the fraud, police said. The society was functioning for the past 16 years and it launched various plans in the agricultural sector. TNN
