ED Arrests Delhi Man In ₹900-Crore Chinese Investment App Fraud Case

(MENAFN- Live Mint) A Delhi-based man has been arrested in connection with a money laundering case linked to an over ₹900-crore investment app "fraud" which was allegedly handled by some Chinese citizens, the Enforcement Directorate (ED) said on Friday.

Rohit Vij was apprehended on June 30 following searches conducted in the national capital, the agency said in a statement.

Fraudulent scheme exposed

The ED case, filed under the Prevention of Money Laundering Act (PMLA), originates from a 2022 FIR registered by the Hyderabad police's cybercrime station.

The police complaint alleged that certain Chinese persons, along with some Indians, have "defrauded" investors by offering "unrealistically" high returns on investments.

The investments were made through a fake investment app named 'LOXAM,' which falsely claimed affiliation with a reputed French multinational corporation by the same name.

Tracing 'tainted' money

The ED investigation revealed that the "tainted" funds were collected in the bank account of a shell entity named Xindai Technologies Pvt Ltd. This company was established in the name of an Indian, purportedly under the instructions of a Chinese national named Jack.

Jack then allegedly obtained internet banking credentials of this account and routed the funds through 38 mule accounts

Hawala network uncovered

The crucial part of the money laundering operation involved Rohit Vij and his associates.

The ED alleges that they converted the tainted funds into foreign currencies like US dollars and UAE dirhams, through shell money changer entities like Ranjan Money Corp Pvt Ltd and KDS Forex Pvt Ltd in Delhi.

These converted foreign currencies were then provided to the "Chinese perpetrators" through illegal "hawala" channels.

An amount of ₹171.47 crore was laundered through Xindai Technologies Pvt Ltd and later converted into forex through the money changer companies, the ED said in a statement.

"However, from the analysis of bank accounts of Ranjan Money Corp. and KDS Forex Pvt. Ltd., it was found that within a period of seven months, these entities, under the control and operation of Rohit Vij, converted ₹903 crore of tainted money generated by Chinese perpetrators and other accused persons," it said.

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