CHENNAI: The Enforcement Directorate (ED) has arrested two men in connection with an alleged ₹1,417.86 crore investment fraud linked to Unique Exports and its associated entities, with the agency alleging that funds collected from thousands of investors were routed through a network of more than 100 bank accounts and disguised as business expenses.The ED’s Chennai Zonal Office-II arrested S Naveen Kumar and S Muthuselvam on Sept 29 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002. They were produced before the Special Court for PMLA cases, which remanded both in judicial custody.The money-laundering investigation followed an FIR registered by the district crime branch, Erode, under various provisions of the IPC and the Tamil Nadu Protection of Interests of Depositors (in Financial Establishments) Act (TNPID Act).According to the ED, Naveen Kumar, Muthuselvam and their associates devised and operated investment schemes named UNI, FNP, FAP and UNR under the banner of Unique Exports, East Valley Agro Firms and other related entities. Investors were allegedly lured with promises of high returns from exports of agricultural commodities.The investigation, however, revealed that Unique Exports and its associated entities did not undertake substantial export activities but continued to collect money from investors on the promise of returns generated through export profits, the ED said.The agency’s investigation has so far found that approximately ₹1,417.86 crore was mobilised from around 35,759 investors. Of this, about ₹719 crore was found deposited in bank accounts of entities linked to Unique Exports. The investor funds were allegedly routed through more than 100 bank accounts held in the names of Unique Exports, associated concerns, family members and close associates.The ED identified Naveen Kumar, proprietor of Unique Exports, as the alleged mastermind behind the investment schemes. According to the agency, he controlled the banking operations and movement of investor funds.Banking analysis allegedly showed that around ₹390.90 crore was recorded as salary payments, despite only four persons working in the concern. Another ₹79.56 crore was recorded as payments for onion and commodity purchases, although no actual purchase of agricultural goods was found. The ED said these transactions were used to layer and conceal investor funds under the guise of business expenditure.Muthuselvam allegedly played a key role in devising and operating the schemes, mobilising investors and routing funds. The investigation found that against an investment of approximately ₹42.10 lakh, he received around ₹12.72 crore as returns, commission, referral benefits and other payments, according to the ED.
