NE BUSINESS BUREAU
CHENNAI, DEC 18
Directorate of Enforcement (ED) has provisionally attached worth over Rs 200 crore in various places across Tamil Nadu in connection with a case of financial fraud committed by the Neomax group of companies, based in Madurai, officials said on Monday.
As per officials, the crackdown was taken under the provisions of the Prevention of Money Laundering Act, (PMLA) 2002.
ED has provisionally attached immovable properties in various places across Tamil Nadu, having market value of Rs.207 Crore, under the provisions of PMLA, 2002, in a case of financial fraud committed by the Neomax group of companies, based in Madurai.
— ED (@dir_ed) December 18, 2023
Taking to the social media platform, X, the central agency said, “ED has provisionally attached immovable properties in various places across Tamil Nadu, having market value of Rs 207 Crore, under the provisions of PMLA, 2002, in a case of financial fraud committed by the Neomax group of companies, based in Madurai.”
According to the official information by the ED, the agency’s involvement in the probe stems from a First Information Report (FIR) filed by the Economic Offences Wing (EOW) of the Tamil Nadu Police.
The FIR was initiated based on complaints filed by investors against Neomax Properties and its associated companies. These companies are accused of deceiving investors by enticing them to deposit significant sums in various projects, promising lucrative returns with interest rates ranging from 12 per cent to 30 per cent, according to an official statement by the ED.
The ED alleges that Neomax and its promoters failed to fulfil their promises to the investors, resulting in financial losses. The group reportedly collected substantial funds from the public, running into hundreds of crores. However, instead of utilising the funds for the promised projects, they stand accused of diverting the money to shell entities, group companies, and other entities outside the group.
The ED further claims that the group manipulated its books of accounts to conceal the proceeds of the alleged fraudulent activities. According to the statement, the auditor of the group has admitted to this manipulation in his official statement to the authorities.
This move by the ED is a part of a broader effort to crack down on financial crimes and protect the interests of investors. As investigations continue, authorities are working diligently to unravel the intricate web of financial irregularities and ensure that those responsible are held accountable for their actions.
