In connection with the Power Bank App fraud case, the Directorate of Enforcement ( ED ) searched 14 locations related to M/s. Sagar Diamond Limited, a BSE-listed firm, M/s. RHC Global Exports Ltd, its director Vaibhav Dipak Shah, and their accomplices in Surat SEZ, Ahmedabad, and Mumbai on 3rd March 2023.
Based on the Delhi Police FIR in the Power Bank App fraud, ED conducted an inquiry under the Prevention of Money-laundering Act, 2002. Via this app, which is run by Chinese nationals in collusion with their colleagues in India, including Vaibhav Dipak Shah and M/s. Sagar Diamond Ltd.., defrauded thousands of common people.
However, the search turned up evidence that M/s. Sagar Diamond Ltd. and others had been in possession and control of the proceeds of the crime/fraud.
A number of Surat Special Economic Zones (SEZ) manufacturing firms were discovered to be swindling money abroad under the guise of fake imports and overvaluing the import and export of diamonds, gemstones, and other valuable metals.
Hundreds of crores of rupees worth of stock that had been recorded in the books of accounts were discovered during the investigation to be significantly overvalued, with an estimated value of Rs. 10 crore. A synthetic ruby with little value was presented as a spectacular jewel.
Cash worth Rs. 25 lakh, gold, diamonds, and other valuables worth Rs. 10 crore, digital devices, and records pertaining to fake import and export all were found during the search. Three people have been arrested in the context of the matter thus far, and several non-bailable orders have also been issued. The investigation is going on.
The Directorate of Enforcement is India’s law enforcement and economic intelligence organisation charged with upholding economic regulations and preventing economic crime. It is a component of the Ministry of Finance’s Department of Revenue in India.
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