ED Arrests Chartered Accountant in ₹792 Crore Falcon Invoice Discounting Scam
The auditor allegedly facilitated the laundering of proceeds of crime by investing illicit funds into multiple companies. According to ED, the auditor is directly responsible for routing about ₹14.81 crore through suspicious cash transfers and financial arrangements with no legitimate business purpose.
A chartered accountant has been arrested by the Enforcement Directorate ( ED ) in relation to a ₹792 crore scam involving M/s Capital Protection Force Pvt. Ltd. and its proprietor, Amardeep Kumar.
The arrest was made as part of an ongoing investigation into the alleged "Falcon Invoice Discounting Scheme" under the Prevention of Money Laundering Act (PMLA), 2002.
Role of the Auditor
Sharad Chandra Toshniwal, the CA, who served as the statutory auditor of Capital Protection Force Pvt. Ltd. since its inception, is alleged to have been fully aware of the fraudulent activities. Investigations revealed he played an active role in managing finances for Amardeep Kumar and his associated firms.
The auditor allegedly facilitated the laundering of proceeds of crime by investing illicit funds into multiple companies including Rhett Healthcare Pvt. Ltd., Rhett Herbal Pvt. Ltd., RDP Workstations Pvt. Ltd., and Swastik Ghee Pvt. Ltd. and even acquired shares in the names of relatives and benamis to obscure the money trail.
Authorities say Toshniwal was directly responsible for routing about ₹14.81 crore through suspicious cash transfers and financial arrangements with no legitimate business purpose. His actions, according to the ED, actively concealed the illicit origins of the funds and enabled the scam’s key players to benefit from the proceeds.
The CA-auditor was presented before a Special PMLA Court and remanded to 14 days of judicial custody as the investigation continues.
The ED had previously attached assets worth approximately ₹18 crore, including immovable properties and a private jet allegedly purchased with scam proceeds. The authorities also arrested Sandeep Kumar, the brother of the scam’s kingpin, as they continue to trace and recover misappropriated assets.
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