Hyderabad: The Enforcement Directorate (ED), Hyderabad Zonal Office, has filed a prosecution complaint under the Prevention of Money Laundering Act (PMLA), 2002 against M/s Metalloise Technologies Private Limited (MTPL), its managing director Jayant Biswas, and his wife Mousumi Biswas, in connection with an alleged ₹115-crore investment fraud that affected thousands of investors across multiple states.
The prosecution complaint was filed before the Special PMLA Court at Ranga Reddy district, Hyderabad, which took cognisance of the matter on January 28, 2026, the agency said. The case relates to allegations of cheating, fraudulent inducement and laundering of proceeds of crime through unauthorised investment schemes promising unusually high returns.
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The ED initiated its probe on the basis of multiple FIRs registered by the Telangana Police, in which Metalloise Technologies, Jayant Biswas and others were accused of defrauding the public by luring them with promises of high interest returns. These FIRs were registered under Section 420 of the Indian Penal Code, 1860, with additional complaints received from investors in several other states.
According to the ED’s investigation, MTPL did not possess any mandatory authorisation or approval from the Reserve Bank of India (RBI) to collect deposits or run investment schemes. The company was originally incorporated for business activities related to metallurgical products and metal welding, but was later allegedly used as a shell entity to mobilise public funds under the guise of fictitious and high-yield investment plans.
The agency stated that the so-called investment schemes had no underlying genuine business activity and were designed solely to raise money from unsuspecting investors. Promoters Jayant Biswas and Mousumi Biswas allegedly devised a structured and deceptive investment model, promising returns ranging from 40 per cent to as high as 200 per cent within short timeframes.
Investigators described the operation as a classic Ponzi-style arrangement, where early investors were paid returns using funds collected from new investors, thereby creating an illusion of profitability and legitimacy. Once the inflow of fresh investments slowed, the payment cycle collapsed, triggering complaints from investors.
The ED further found that MTPL also collected nearly ₹200 crore as non-refundable registration fees from investors under various agreements and documents. These agreements were allegedly structured to limit the company’s liability while allowing it to collect funds without delivering any tangible products or services in line with its stated business objectives under the Memorandum of Association.
As per the agency’s findings, the company mobilised approximately ₹114.52 crore from more than 4,000 investors. Of this amount, about ₹99.57 crore was returned to investors, while the remaining ₹14.95 crore was allegedly misappropriated by the accused. The ED said investors were deliberately misled regarding the company’s legal standing, operational credibility and financial sustainability.
To project legitimacy and attract more investors, MTPL allegedly adopted aggressive marketing strategies, including printed brochures, video presentations and lavish seminars held at luxury hotels. The company also paid commissions and incentives to agents, team leaders and early investors to expand its investor base. These payouts reportedly ceased once new investments declined, leading to widespread panic among investors.
The investigation also revealed that the proceeds of crime were diverted for personal and unrelated commercial use. These included expenditure on promotional events, travel and investments in entities such as SO Vacations, Samarine Coffee House, and M/s Arthakranti BD Nidhi Limited, a company linked to a Nidhi bank. The accused also allegedly used the illicit funds to purchase two residential flats in Kolkata and to create fixed deposits in the name of Mousumi Biswas’s mother.
Earlier, the ED had issued Provisional Attachment Order No. 23/Hyderabad/2025 dated April 30, 2025, under which movable and immovable assets worth approximately ₹132 crore were attached. These assets were identified as having been acquired using proceeds generated from the alleged fraud.
The agency said that further investigation in the case is ongoing, and additional facts, financial trails and entities linked to the laundering of funds are likely to emerge as the probe progresses.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
