The Directorate of Enforcement (ED) seized 18.54 Crores of VIPS Group in connection with FEMA, 1999 in violation by VIPS Group of Companies and M/s Global Affiliate Business managed & controlled by Vinod Khute & his relatives.
The investigation under FEMA,1999 initiated against Vinod Khute & others, who is the mastermind of various illegal trade, crypto exchange, and wallet services being operated through VIPS Group of companies and the proceeds were being siphoned off through Hawala to various foreign countries.
It was found that M/s Global Affiliate Business has been running illegal & unauthorized multi-level marketing schemes wherein if a person opts for the scheme as a member and refers other consumers/ clients to the application/ website, a commission on his investment/ expense on the application is credited in his account/ wallet.
It was found that in this manner, funds to the tune of Rs.125 Crore have been collected from various investors. As per the Investigation, the investment to the tune of Crores of rupees from various clients/ investors had been collected in cash also and the proceeds so collected by M/s Global Affiliate Business had been siphoned off out of the country through Hawala Channels as well as to various shell companies/firms.
ED, based on the trail of money, has frozen a sum of Rs.17.22 Crore in the form of bank balances, under the provisions of FEMA, 1999.
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