The Enforcement Directorate has arrested two men, S. Naveen Kumar and S. Muthuselvam, in connection with an alleged Ponzi and investment fraud amounting to Rs 1,417.86 crore operated under the name of Unique Exports and associated firms. Officials from the agency’s Chennai Zonal Office-II took both suspects into custody on September 29, 2026, under Section 19 of the Prevention of Money Laundering Act. A Special PMLA Court subsequently remanded the accused to 15 days of judicial custody. The federal money laundering probe stems from several first information reports filed by the District Crime Branch in Erode, Tamil Nadu, under various sections of the Indian Penal Code and the Tamil Nadu Protection of Interests of Depositors Act.
Multi-tiered investment schemes and promised export profits
According to the investigators, the two accused, alongside their associates, established multiple investment plans under various banners, including Unique Exports, East Valley Agro Farms, and labels such as UNI, FNP, FAP, and UNR. Promoters allegedly targeted members of the public with guarantees of lucrative returns purportedly generated through the export of agricultural produce. The syndicate organised promotional gatherings to enlist prospective depositors, offering referral commissions and related perks to widen its base. To establish credibility and encourage participation, the accused circulated images on WhatsApp showing high-end car acquisitions.
The financial probe revealed that Unique Exports conducted minimal genuine export business. Instead, the organisation operated on a classic Ponzi framework, using capital obtained from new entrants to satisfy payout obligations to older participants. Across these operations, the network raised approximately Rs 1,417.86 crore from 35,759 investors. Bank accounts directly linked to Unique Exports received about Rs 719 crore of the collected funds, while a network of more than 100 accounts held under the names of related entities, family members, and associates was deployed to route the remaining capital.
Fabricated commodity trades and inflated salary payouts
Investigators identified Naveen Kumar, the proprietor of Unique Exports, as a principal controller of the banking channels and fund transfers. A financial audit of the firm revealed stark discrepancies, including approximately Rs 390.90 crore recorded as salary disbursements despite the enterprise employing only four individuals. The agency also discovered entries showing roughly Rs 79.56 crore expended on agricultural purchases, including onions, though investigators found no actual movement or acquisition of commodities. Authorities believe these fictitious trade records were introduced to disguise illicit proceeds as standard commercial operational costs.
Muthuselvam allegedly operated as a core architect of the operational framework, structuring schemes, drawing in contributors, and supervising transactions. While his recorded personal stake amounted to Rs 42.10 lakh, he reportedly extracted nearly Rs 12.72 crore through returns, referral commissions, and promotional incentives. The probe documented that Muthuselvam circulated investor funds through his personal accounts as well as corporate vehicles such as Dhanyashree Enterprises and Universe369 Infra Private Limited.
Diversion of proceeds and asset tracking
The agency discovered that funds siphoned from depositors were channelled into fixed deposits, insurance policies, debt liquidations, property acquisitions, and various personal and commercial expenses. The recent detentions follow search operations carried out on June 16 and 17, 2026, across nine locations associated with Naveen Kumar and his associates under Section 17 of the PMLA, during which officers impounded extensive financial archives and records.
The Enforcement Directorate is currently mapping the full money trail across the banking network, working to identify additional accounts and secure properties purchased with the alleged proceeds of crime. Agency officials confirmed that further scrutiny of associated corporate bodies and personal transactions remains underway to determine the complete reach of the operation.
Follow for daily updates on cybercrime, corporate fraud, DFIR, hacking, investigations, and digital forensics
