ED raids 15 locations in connection with Rs 2,438 crore Aruthra company fraud case
Tamil Nadu: The Enforcement Directorate on Wednesday raided 15 locations in Chennai, Kanchipuram, and Vellore districts in connection with a ₹2,438 crore fraud case involving the Aruthra company.
Aruthra Gold, headquartered in Aminkarai Mehta Nagar, Chennai, operated in several parts of Tamil Nadu, including Kanchipuram, Tiruvallur, Tiruvannamalai, Arani, Cheyyar, and Coimbatore. The company advertised that if you invest ₹1 lakh, you will receive ₹36,000 interest every month. Believing this, many people invested. However, the company defrauded 109,255 people of ₹2,438 crore.
In this case, the Economic Offenses Wing of the Tamil Nadu Police registered a case against 21 executives of the company and arrested 14 of them. A Red Corner Notice has been issued due to its director, Rajasekhar, fleeing abroad. A thorough investigation by the Economic Crimes Division revealed that company officials had stashed ₹500 crore of fraudulent proceeds in Dubai, United Arab Emirates. It also revealed that company officials had purchased properties there. Following this, the Economic Crimes Division is freezing these properties and taking steps to recover the money.
Enforcement Directorate Investigation: Since evidence of illegal money transfers was found in this scam, the Economic Offenses Wing (EOW) recommended the Enforcement Directorate to investigate. Based on this, Enforcement Directorate officials filed a new case under the Prevention of Money Laundering Act, based on the case filed by the Economic Offenses Wing.
Following this, enforcement officials raided 15 locations linked to the company in Chennai, Kanchipuram, and Vellore districts on Wednesday.
Searches were conducted at the administrative residences of the Aruthra Company in Aminkarai, East Front, Villivakkam, Poonamallee, and Chitlapakkam in Chennai. Paramilitary personnel with guns were deployed for security at the locations searched. The Enforcement Directorate stated that details of the documents, jewelry, and money seized would be disclosed only after the searches were fully completed.
