INDIA. Mumbai: The Directorate of Enforcement (ED) recently carried out searches at locations in Pune and Ahmednagar, Maharashtra, as part of an investigation into violations of the Foreign Exchange Management Act (FEMA) by the “VIPS Group of Companies” and “Global Affiliate Business.” During the operation conducted on May 25, cash and bank balances totaling Rs. 18.54 crore were seized or frozen.
According to an official statement released by the ED on Friday, the companies, managed and controlled by Vinod Khute and his relatives, were found to be involved in various illicit activities. Vinod Khute, who currently resides in Dubai, is believed to be the mastermind behind illegal trading, cryptocurrency exchange, and wallet services operated through the VIPS Group of companies. The proceeds from these activities were funneled through Hawala channels to multiple foreign countries.
Upon investigation, it was discovered that “Global Affiliate Business,” which promotes affiliate marketing by selling products through an E-Commerce Shopping Portal, operated through a mobile application called “Global Affiliate Business,” available on both Google Play Store and Apple Store.
However, it was found that the company was engaged in illegal and unauthorized multi-level marketing schemes. Under these schemes, individuals who joined as members and referred other consumers or clients through the application or website received commissions based on their investments or expenses, which were credited to their accounts or wallets.
Through this fraudulent operation, a sum of Rs. 125 crore was collected from various investors. Additionally, it was revealed that “Global Affiliate Business” was also involved in marketing the business of “Kana Capital,” which is engaged in brokerage services related to forex, cryptocurrencies, stocks, and more.
In collaboration with the directors of the VIPS Group of companies, “Kana Capitals” organized weekly training programs for clients of “Global Affiliate Business” to encourage investments in VIPSWALLET and VIPSFINSTOCK for the purchase and sale of cryptocurrencies and stocks. Furthermore, the aim was to entice other consumers and clients into participating in illegal and unauthorized multi-level marketing schemes.
Another enterprise established by Khute, known as “D Dhanashree Multi-State Co-op Credit Society Limited” based in Pune, was recently launched to deceive investors through fake schemes promising monthly interest rates of 2 to 4 percent.
The investigation also uncovered that large sums of money, amounting to crores of rupees, were collected from clients and investors in cash, and the proceeds were transferred out of the country through Hawala channels and various shell companies.
Also Read: Bank Fraud: Properties Worth Rs 124 Cr of a Chennai-based Company Attached by ED
