ED Files Prosecution Complaint Against Amber Dalal in Rs 564 Crore Investment Fraud Case
The Enforcement Directorate (ED), Mumbai, has filed a Prosecution Complaint (PC) against Amber Dalal and others in connection with a massive investment fraud involving his firm, M/s Ritz Consultancy Services.
Mumbai: The Enforcement Directorate (ED), Mumbai, has filed a Prosecution Complaint (PC) against Amber Dalal and others in connection with a massive investment fraud involving his firm, M/s Ritz Consultancy Services. The case was filed under the Prevention of Money Laundering Act (PMLA), 2002, before the Special Court (PMLA) in Mumbai on January 23, 2025, and was taken cognizance of by the court on January 24.
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Details of the Investigation
The ED’s investigation stemmed from an FIR registered by the Oshiwara Police Station, Mumbai, on March 25, 2024, which was later handed over to the Economic Offences Wing (EOW). According to the ED, Amber Dalal collected investments from over 2,000 individuals, promising returns of 1.5% to 1.8% per month through commodity trading. However, instead of fulfilling these commitments, Dalal allegedly diverted the funds for personal gains.
The total fraud is estimated to be around Rs 564 crore, with Dalal accused of running a Ponzi scheme where new investments were used to pay earlier investors.
How Funds Were Misused
The ED revealed that the funds collected were routed through multiple bank accounts held by Dalal, his family members, and associates to mask their origin. A significant portion of the money was used to purchase properties in the names of family members, while Rs 15.04 crore was allegedly transferred to a close associate, Rashmi Prasad.
Assets Attached
As part of the investigation, the ED provisionally attached assets worth Rs 67 crore. These include:
- Immovable properties
- Bank balances
- DEMAT holdings
- Insurance policies
- Investments in alternative investment funds
One of the attached properties is located in Dubai, UAE.
Current Status and Arrest
Amber Dalal was arrested under the provisions of the PMLA and is currently in judicial custody. The ED has sought the confiscation of the attached assets and continues its efforts to recover the defrauded funds while identifying others involved in the scheme.
Key Highlights:
- Fraud Amount: Rs 564 crore
- Number of Investors Defrauded: Over 2,000
- Assets Attached: Rs 67 crore, including a Dubai property
- Legal Action: Prosecution Complaint filed under PMLA, 2002
The ED’s investigation underscores the importance of vigilance in financial investments and strict enforcement against fraudulent schemes.
