CBI launched 87 money laundering probes under PMLA since 2019: Centre informs Lok Sabha

The Centre on Monday informed Lok Sabha that the Central Bureau of Investigation (CBI) has registered 100 cases involving 132 firms relating to the Ponzi scheme since 2019, while the Enforcement Directorate (ED) has launched 87 money laundering inquiries in such cases during the last three and a half years. 

According to news agency ANI, the Minister informed Lok Sabha that from 2019 to June 30, 2022, the CBI arrested 21 persons in its investigation of 100 FIRs lodged while probing Ponzi schemes. Meanwhile, ED on the other hand held eight accused under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA). 

Minister of State for Finance Pankaj Chaudhary while answering the queries of five MPs in Lok Sabha informed that the government and enforcement agencies have taken action against those running unauthorised schemes in the country. 

Notably, a Ponzi scheme is an investment scam that involves the payment of returns to existing investors from funds contributed by new investors. Ponzi scheme organisers often appeal to new investors by promising to invest funds in opportunities that claim to generate high returns.

Cases registered since 2019

The Minister stated, "Serious Fraud Investigation Office (SFIO) has informed that it has been assigned investigation by the Ministry of Corporate Affairs (MCA) into the affairs of nine cases (five in 2019-20, one in 2020-21, and three in 2021-22) involving 85 companies (36 in 2019-20, 16 in 2020-21, and 33 in 2021-22) during the last three years." Further adding he said, "The cases were allegedly engaged in fraudulent chit fund, Multi-Level Marketing (MLM) or Ponzi activities. However, no arrest has been made in this regard by SFIO."

The Minister also informed about the complaints of financial frauds lodged on the Sachet portal of the Reserve Bank of India (RBI). The minister said that the online platform for State Level Coordination Committees (SLCC) received 1,540 complaints related to non-repayment of deposits and money collected for various kinds of Investment Schemes (964 in 2020-21, and 576 in 2021-22).

"Securities and Exchange Board of India (SEBI) has passed final Orders against 29 unregistered Collective Investment Schemes (CIS) entities during the last four years (12 in 2018-19, 10 in 2019-20, 5 in 2020-21 and 2 in 2021-22)," the Minister of State was quoted by ANI. 

Centre's efforts to tackle frauds

Talking about the Centre's efforts to tackle the cases of fraud, the Minister said that the Banning of Unregulated Deposit Schemes Act, 2019 was enacted by the Central government to protect the interests of people and save them from dupes. "The Act contains comprehensive provisions in this regard prohibiting promoting, operating, issuing advertisements or accepting deposits in any Unregulated Deposit Scheme, and provisions for severe punishment and heavy pecuniary fines to act as a deterrent," he added. 

He also said that 29 states and Union Territories (UTs) have passed the Protection of Interest of Depositors (PID) Acts for taking action against entities collecting money from the public illegally.