The Enforcement Directorate (ED) has obtained a three-day police custody of Sandeep Kumar, implicated in a ₹792 crore financial fraud executed under the guise of an invoice discounting scheme. The court ruling came just days after his arrest under the Prevention of Money Laundering Act (PMLA), with authorities intensifying their crackdown on a complex financial racket allegedly orchestrated by his brother.
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Falcon Invoice Scam Unveiled
The ED is investigating Capital Protection Force Pvt Ltd, said to have orchestrated a bogus scheme under the Falcon Invoice Discounting platform, promising high returns on investor funds—with no actual invoice discounting being carried out. Investors, lured by slick digital apps and promotions tying the scheme to MNCs, were defrauded of ₹792 crore.
Sandeep, who previously ran the operations wing of the firm, reportedly received ₹4.85 crore in proceeds from the scam. He is accused of diverting these funds into his companies—Falcon Capital Ventures and Swastik Ghee Pvt Ltd—and investing in real estate and business ventures.
Luxury and Lies: Crime Proceeds Squandered
ED investigations uncovered lavish misuse of investor funds: purchases of an aircraft, casino trips, real estate acquisitions, and equity investments trace back to proceeds of the fraud.
To clamp down on further misuse, the ED has already attached assets worth ₹18.14 crore—including properties valued at ₹7.65 crore linked to Sandeep.
Sandeep was first arrested by the CID in May and released on bail. Later, after fleeing to Dubai, he returned to India via Nepal and was rearrested in Hyderabad.
The ED’s custody allows investigators to question him rigorously as they trace the fraudulent money trail and expose the roles of other conspirators, including his absconding brother, Amardeep Kumar, the presumed mastermind.