The Directorate of Enforcement (ED), Hyderabad Zonal Office, has arrested Chartered Accountant Sharad Chandra Toshniwal for his alleged involvement in laundering money in the Rs 792 crore Falcon invoice discounting scam. He was produced before the Special PMLA Court and remanded to 14 days' judicial custody.
Fake Investment Scheme Exposed
The case originated from three FIRs filed by the Cyberabad Economic Offence Wing against Capital Protection Force Pvt. Ltd., its promoter Amardeep Kumar, and associates. Investigations revealed that the company floated the so-called "Falcon invoice discounting scheme," luring investors with promises of high returns.
However, ED officials confirmed that no real business activity was carried out. Instead, nearly Rs 792 crore collected from investors was siphoned off for personal gains. The app developed by Amardeep Kumar was reportedly used solely to mobilize deposits without any genuine invoice discounting operations.
Auditor's Role Under Scrutiny
According to the ED, Sharad Chandra Toshniwal had been the statutory auditor of Capital Protection Force since its incorporation and was fully aware of the fraudulent transactions. Investigators allege that he not only managed the finances of Amardeep Kumar and his family-owned firms but also helped divert illicit funds into multiple entities, including:
- Rhett Healthcare Pvt. Ltd.
- Rhett Herbal Pvt. Ltd.
- RDP Workstations Pvt. Ltd.
- Swastik Ghee Pvt. Ltd.
Amardeep Kumar allegedly acquired shares in these firms through relatives and benami holders, and facilitated cash transactions worth Rs 14.81 crore in exchange for transferring laundered money to various companies without any legitimate business purpose.
Previous Action and Ongoing Probe
This arrest follows earlier enforcement actions in the case. The ED had attached assets worth Rs 18.14 crore belonging to the accused and also arrested Sandeep Kumar, brother of Amardeep Kumar, for his role in the fraud.
Officials stated that Toshniwal played a crucial role in concealing and layering the proceeds of crime, making him a key conspirator in the money laundering network. The probe into further diversion of funds and identification of other beneficiaries is ongoing.
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