ED Chargesheets MTPL Directors in Ponzi Case
The duo used the scam money to fund business ventures
Hyderabad: The Enforcement Directorate have filed prosecution complaint (chargesheet) before the Special Court at Rangareddy against Metalloids Technologies Private Limited (MTPL) and its managing directors Jayant Biswas and his wife Mousumi Biswas for violation of the Prevention of Money Laundering Act (PMLA).
They had allegedly defrauded 4,000 investors of ₹14.95 crore, collecting over ₹114.52 crore from them and returning `99.57 crore. The duo and the company had been booked by the police for cheating investors after offering investment schemes claiming to offer high returns.
The duo used the scam money to fund business ventures such as SO Vacations and Samarin Coffee House, Arthakranti Beed Nidhi Ltd acquisition of two flats in Kolkata and fixed deposits in the name of mother of Mousumi Biswas.
It was revealed that MTPL did not have the necessary RBI permission for running these schemes. MTPL was incorporated for carrying out trading of metallurgical products and metal welding related products but was used as a shell entity to mobilise deposits from the public.
The agency said the MDs promised returns ranging from 40 to 200 per cent in very short durations. These schemes were structured in a classic Ponzi model where initial returns were disbursed using funds from newer investors, the ED said. MTPL also collected non-refundable registration fees of ₹2,222 per ID, issued misleading agreements disclaiming liability, and collected deposits without any underlying productive activity .
MTPL used elaborate marketing strategies including printed brochures, video presentations, and motivational seminars at luxury hotels. The company rewarded commission agents, team leaders, and early investors with incentives to fuel further investments. However, these payouts were unsustainable and ceased once the inflow of new investments declined, triggering panic among depositors.
