ED Conducts Massive Raids Across UP In Rs 300 Crore Maxizone Ponzi Scheme Investigation

The Enforcement Directorate (ED) conducted extensive search operations at approximately 20 locations across Uttar Pradesh on Thursday in relation to the Maxizone Ponzi scheme investigation. Authorities allege the scheme's promoters defrauded investors of over Rs 300 crore by promising extraordinarily high returns.

New Delhi:

Beginning early Thursday morning, ED officials executed coordinated raids in Ghaziabad, Noida, and Meerut following intelligence regarding suspects and accused individuals connected to the case.

According to officials, the ED's Ranchi zonal office is spearheading the search operations in collaboration with Uttar Pradesh Police. The primary objectives include gathering digital evidence, financial documentation, and identifying potential money laundering activities.

Investigation teams simultaneously searched both residential and commercial properties associated with the accused individuals, senior company officials, employees, and other suspected associates.

ED investigators report that their inquiry revealed how Maxizone's promoters attracted thousands of investors by offering unrealistic profit guarantees, allegedly utilizing falsified documents and manipulated financial forecasts to establish credibility. "After collecting substantial investments, the accused reportedly diverted the funds and disappeared," according to sources.

Authorities suspect a considerable portion of the money was channeled through shell companies and routed through multiple bank accounts to obscure its source.

Both primary promoters are currently held in judicial custody related to the predicate offense previously registered by police. ED officials are also investigating whether the collected funds were converted into immovable property, luxury vehicles, or offshore investments.

As part of its investigation under the Prevention of Money Laundering Act (PMLA), the agency plans to record statements from numerous individuals linked to the company's financial operations.

The search operations remain ongoing, with officials indicating that additional arrests, asset seizures, and recovery actions may follow based on evidence collected. Officials emphasized that findings from today's operations will be crucial in establishing the complete scope of the alleged fraud and tracking the money trail.