ED attaches Sahara Group land worth Rs 1,460 crore in Aamby Valley City amid Ponzi scam probe

The Directorate of Enforcement (ED) has provisionally attached 707 acres of land in and around Aamby Valley City, Lonavala, valued at Rs 1,460 crore under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the Sahara India case and its group entities. This land was allegedly purchased using ‘benami’ names with funds diverted from Sahara Group entities.

The investigation was initiated based on three FIRs registered under Sections 420 and 120B of the IPC against M/s Humara India Credit Co-operative Society Ltd (HICCSL) and others by the Odisha, Bihar, and Rajasthan Police. Additionally, over 500 FIRs have been filed against Sahara Group entities and related persons, with more than 300 registered for offenses scheduled under the PMLA, 2002. These cases allege that depositors were cheated into depositing funds, forced to redeposit without consent, and denied maturity payments despite repeated demands.

The ED investigations revealed that Sahara Group was running a Ponzi scheme through various entities, including HICCSL, Sahara Credit Cooperative Society Limited (SCCSL), Saharayn Universal Multipurpose Cooperative Society (SUMCS), Stars Multipurpose Cooperative Society Limited (SMCSL), Sahara India Commercial Corporation Ltd (SICCL), Sahara India Real Estate Corporation Ltd (SIRECL), Sahara Housing Investment Corporation Ltd (SHICL), and other Sahara group entities. The group allegedly cheated depositors and agents by offering high returns and commissions, utilising collected funds in a non-regulated manner without depositor information or control.

Further investigations showed that the group manipulated books of accounts to camouflage non-repayment, treating reinvestment as fresh investment in another scheme. To perpetuate the Ponzi scheme, they continued accepting fresh deposits despite being unable to repay existing maturity amounts. Part of the collected money was siphoned off and diverted for creating ‘benami’ assets, personal expenses, and a lavish lifestyle. Investigations also revealed that the group disposed of Sahara Group assets and received part of the payment in undisclosed cash, denying depositors their rightful claims.

During the investigation, statements from various persons, including depositors, agents, employees of Sahara Group, and other related persons, were recorded under Section 50 of the PMLA. Searches conducted under Section 17 of the PMLA resulted in the seizure of unexplained cash amounting to Rs 2.98 crore.

India