The Enforcement Directorate (ED) has arrested two men in connection with an alleged ₹1,417.86-crore investment fraud that reportedly affected nearly 36,000 investors through schemes linked to agricultural exports.
S Naveen Kumar and S Muthuselvam were arrested on September 29 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. A Special Court for PMLA cases subsequently remanded them to 15 days of judicial custody.
According to the ED, the case originated from an FIR registered by the District Crime Branch in Erode under provisions of the Tamil Nadu Protection of Interests of Depositors Act and related money-laundering laws.
How The Investment Scheme Worked
Investigators said the accused and their associates operated schemes under names such as “UNI”, “FNP”, “FAP” and “UNR” through entities including Unique Exports and East Valley Agro Firms.
Investors were allegedly promised attractive returns from profits generated through agricultural exports. However, the ED said its financial analysis found little evidence of genuine export activity, alleging that the businesses were primarily used to collect and circulate investors’ money.
The agency said approximately ₹1,417.86 crore was collected from 35,759 investors.
More than ₹719 crore was allegedly deposited into accounts linked to Unique Exports, while funds were moved through over 100 bank accounts belonging to associated companies, relatives and close associates.
Money Allegedly Disguised As Business Expenses
The ED alleged that ₹390.90 crore was shown as salary payments despite the company having only four employees. Another ₹79.56 crore was allegedly recorded as purchases of onions and other agricultural commodities, although investigators found no corresponding physical trade.
Naveen Kumar, proprietor of Unique Exports, allegedly controlled the firm’s banking operations and movement of funds.
Muthuselvam, meanwhile, is accused of helping design the schemes and attract investors. The ED alleged that although he invested ₹42.10 lakh, he received ₹12.72 crore through alleged returns, referral incentives and commissions.
The agency said the money was routed through his accounts and entities including Dhanyasree Enterprises and Universe369 Infra Private Limited.
The arrests followed ED searches at nine premises linked to the case on June 16 and 17. The agency said its investigation is continuing, including efforts to trace the money trail and identify assets allegedly acquired through the proceeds.
The allegations are part of the ongoing investigation, and further action will depend on the findings of the probe and court proceedings.
