Enforcement Directorate flags Ponzi scheme in name of Islamic Banking

The Enforcement Directorate has written to RBI about alleged dubious activities of a Karnataka-based firm charging it with running a ponzi scheme “in the name of Islamic banking or halal investment” and collecting over Rs 950 crore funds.

The ED office in Bengaluru has also written to Karnataka Police seeking all FIRs filed by it against the firm on the alleged chit fund scheme being run by it in order to study the case comprehensively and file a fresh criminal case under the Prevention of Money Laundering Act (PMLA). Islamic banking or halal investment is illegal in India.

The ED identified the accused firm as Ms Ambidant Marketing Private Limited, run by one S Fareed Ahmed and S Afaq Ahmed, and said it first came under its radar in January for alleged FEMA contraventions and subsequently searches were conducted on the company that month.