The Enforcement Directorate has arrested two men in Chennai in connection with an alleged money laundering investigation involving an investment fraud of approximately ₹1,417.86 crore collected from 35,759 depositors. The accused, identified as S. Naveen Kumar and S. Muthuselvam, were taken into custody on Tuesday under Section 19 of the Prevention of Money Laundering Act, 2002. They were subsequently produced before the Special Court for PMLA cases, which remanded both individuals to 15 days of judicial custody while the central agency tracks the flow of diverted capital.
High Returns Promised on Fictitious Farm Exports
According to the agency, Naveen Kumar, Muthuselvam, and their associates floated several speculative investment schemes titled UNI, FNP, FAP, and UNR. These offerings operated under corporate entities that included Unique Exports and East Valley Agro Firms, among others. Marketing materials promised prospective contributors substantial profit-sharing returns financed through agricultural trade. Convinced by claims that their capital would fuel international shipments of farm produce, thousands of participants placed personal savings into the ventures over successive promotional rounds.
Over 35,000 Investors Targeted Across Schemes
Scrutiny of the commercial records revealed that the affiliated firms engaged in little to no genuine export activity. Despite the absence of legitimate trading revenues, the companies continued to solicit significant deposits by promoting high returns. Investigators estimate that the network absorbed ₹1,417.86 crore from 35,759 investors across multiple locations. The central agency is now examining financial statements, operational ledgers, and institutional channels to determine the exact methods deployed by promoters to convince investors and identify the administrative tasks managed by the arrested operators.
Court Remands Accused as Fund Traces Continue
Following their initial remand by the Special Court, both accused remain subject to custodial questioning as forensic auditors map the secondary movement of funds. The probe is focused on identifying the ultimate beneficiaries, banking networks, and intermediary corporate shells utilized to transfer proceeds generated through the agricultural export pitches. Officials noted that subsequent phases of the inquiry will review inter-company transactions, examine the participation of secondary partners, and establish the broader mechanism used to conceal the collected deposits.
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