The Enforcement Directorate (ED) on Monday began recording the statements of K.D. Prathapan and his wife Sreena Prathapan, managing director and CEO of Highrich Online Shoppe Private Limited, who have been accused of committing financial fraud.
The couple were unavailable in their house when ED officials raided the house a few days ago. They appeared before ED officials on Monday morning.
The agency had booked a case against the couple under the Prevention of Money Laundering Act for defrauding investors by illegally running a multi-level marketing (MLM) company. It had also frozen movable properties worth ₹212.45 crore of Highrich Smartech, Highrich Online Shoppe, and its promoters and associated companies.
The ED began its probe against the couple and their companies following a first information report registered by the police for cheating. The chief operating officer and marketing manager of the group were questioned following allegations of an 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 had earlier said.
