ED Auctions Rs 14-Crore Business Jet Seized in Rs 792-Crore Investment Fraud Case

The Hawker 800A aircraft with registration number N935H was seized by authorities in March this year.

New Delhi:

The Enforcement Directorate (ED) has placed a seized business jet for auction in Hyderabad. The aircraft, valued at approximately Rs 14 crore and purchased in 2024, is being sold as part of efforts to recover funds for victims of an alleged investment fraud scheme.

The Hawker 800A aircraft, identified by registration number N935H, was confiscated by the federal investigation agency during operations conducted at Rajiv Gandhi International Airport (RGIA) in Telangana's capital in March.

These enforcement actions were connected to an investigation targeting the Falcon Group (Capital Protection Force Private Limited), its chairman-cum-managing director (CMD) Amardeep Kumar, and associates. The group is accused of orchestrating a fraudulent invoice-discounting scheme that reportedly defrauded investors of Rs 792 crore.

According to the ED's Tuesday statement, Kumar acquired the aircraft in 2024 for USD 1.6 million. The agency reported that Kumar utilized this very aircraft to flee India and remains at large. ED officials from the Hyderabad zonal office seized the plane after it returned to RGIA.

The business jet is currently stationed at Hyderabad's Begumpet Airport and will be available for inspection until December 12. The Metal Scrap Trade Corporation Limited (MSTC) will conduct the auction on December 9.

The ED stated: "The proceeds from the sale of the aircraft shall be eventually used for the purpose of restitution to the victims of the scam."

In August, the Adjudicating Authority established under the Prevention of Money Laundering Act (PMLA) confirmed the ED's provisional attachment order. Subsequently, the agency submitted an application to take possession of the movable asset for sale purposes.

On November 20, the authority granted permission for the ED to auction the aircraft.

A specific provision within the PMLA allows for the sale of confirmed attached property if it is subject to rapid deterioration or if maintenance costs would likely exceed its value.

The ED investigation stems from an FIR filed by the Cyberabad Police in February. The police alleged that Kumar established an invoice-discounting scheme called "Falcon Invoice Discounting" that defrauded unsuspecting investors of Rs 792 crore.

Three individuals have been arrested in connection with the case: Kumar's brother Sandeep Kumar, chartered accountant Sharad Chandra Toshniwal, and Capital Protection Force COO Aryan Singh Chhabra. The ED filed a chargesheet with the special court in Rangareddy in September.