ED attaches Raj Kundra's assets worth Rs 98 crore in money laundering case
Kundra supposedly got 285 Bitcoins from one of the key people behind the scam, Amit Bhardwaj, to set up a Bitcoin mining operation in Ukraine
The Enforcement Directorate on Thursday (April 18) said they temporarily took control of assets worth about ₹97.79 crore belonging to businessman Raj Kundra.
The move to attach property has been made as a part of investigation into a suspected scam involving a Singapore-based company called Variable Tech Private Limited, which allegedly swindled around ₹6,600 crore from people using Bitcoin.
Kundra, who is married to Bollywood actress Shilpa Shetty, is believed to have been benefited from this scam. The attached properties include a flat in Juhu, a bungalow in Pune, and some shares owned by Kundra.
Variable Tech promised big returns to people who invested their Bitcoins, saying they would use the money for Bitcoin mining. However, they allegedly tricked investors and stashed the Bitcoins in secret online accounts.
Kundra supposedly got 285 Bitcoins from one of the key people behind the scam, Amit Bhardwaj, to set up a Bitcoin mining operation in Ukraine. Since the deal didn't materialise, Kundra still has those Bitcoins, which are now worth over ₹150 crore.
Key suspects on the run
The main suspects in the scam, Ajay Bhardwaj and Mahendra Bhardwaj, are on the run.
The investigation started in 2018 after cases were filed by police in Maharashtra and Delhi against Variable Tech and others involved.
Kundra and Shetty deny any wrongdoing. Their lawyer believes they'll be cleared of all the charges after presenting their case to the authorities.
“There is no prima facie case made out against my clients Mr Raj Kundra and Mrs Shilpa Shetty Kundra. I believe when we make our fair representation before the Enforcement Directorate, even the investigation agencies may grant justice to us. We have faith in the fair investigation,” the couple's lawyer Prashant Patil told the media.
In a Ponzi scheme, fraudsters promise big profits with little risk, but they don't actually invest the money. Instead, they use new investors' funds to pay off earlier investors, creating a cycle of deception.