The Enforcement Directorate (ED) has frozen movable properties worth ₹212.45 crore of Highrich Smartech, Highrich Online Shoppe, and its promoters and associated companies.
The action came following searches on the business premises of Highrich Online Group companies in Thrissur and the residences of the two directors of the company last week. Search was also held on the premises of Gipra Business Solution in Kochi, which was maintaining the software and records for the Highrich Group, according to a communication.
The ED initiated the investigation based on first information reports (FIRs) registered by Kerala Police for cheating. The chief operating officer and the marketing manager of the group were questioned in connection with the alleged multi-level marketing (MLM) Ponzi scheme run by the company. There were complaints that the group had made pecuniary advantage to the tune of ₹1,157.32 crore by luring the public into a fraudulent MLM scheme, the agency said.
A major portion of the money thus collected was utilised for redistribution to members as incentive/commission. The company and its promoters also siphoned off a portion of the money collected from the public, the agency alleged.
Highrich Smartech Private Limited had engaged in promoting and trading cryptocurrency. Though the company had not formed any exchange for the purpose, it had collected an advance amount of ₹20 crore from customers on the promise of exorbitant interest and annual profits. Customers were also offered incentives for introducing new customers, the agency alleged in a communication.
