The Enforcement Directorate (ED) on Friday announced the arrest of a Delhi-based man, Rohit Vij, in connection with a money laundering case involving an alleged ₹900-crore investment app fraud operated by individuals based in China. The agency stated that the fraudulent scheme promised investors unrealistically high returns through a fake investment platform.
According to an official statement from the ED, Vij was arrested on June 30 after search operations were carried out at his residence in the nation's capital. Based on a 2022 First Information Report (FIR) submitted by the Hyderabad Cybercrime Police Station, the money laundering case has been filed under the Prevention of Money Laundering Act (PMLA).
The FIR claims that a group of Chinese nationals, working with Indians, deceived investors by promising enormous returns via the phoney "LOXAM" mobile application. The app tricked investors into thinking it was a genuine investment opportunity by making a false claim about its affiliation with a reputable French multinational corporation of the same name.
According to the ED's investigation, the money obtained from the scam was transferred to a bank account owned by Xindai Technologies Pvt. Ltd., a shell company that was established in the name of an Indian national at the request of a Chinese national known as Jack. According to reports, the Chinese person gained access to the account through internet banking and used a network of 38 mule accounts to transfer the illegal funds.
Also Read: ED conducts raids across Maha, Gujarat in ₹100 cr cybercrime case
The agency claimed that Rohit Vij and his associates used Delhi-based shell foreign exchange companies, such as Ranjan Money Corp. Pvt. Ltd. and KDS Forex Pvt. Ltd., to convert the laundered funds into foreign currency. Through hawala routes, which are illicit and unofficial money transfer channels, Vij and his associates are accused of helping to convert the tainted funds into foreign currencies like US dollars and UAE dirhams before giving them to the Chinese masterminds.
The ED claims that roughly ₹171.47 crore was first transferred via Xindai Technologies Pvt. Ltd. and then changed into foreign currency by the two forex firms. A more thorough examination of the financial transactions, however, showed a far bigger scheme.
"Over the course of seven months, these entities—under the supervision and management of Rohit Vij—had converted roughly ₹903 crore of tainted funds created by Chinese perpetrators and other accused individuals, according to the examination of the bank accounts of Ranjan Money Corp. and KDS Forex Pvt. Ltd.," the ED said. According to the agency's findings, a sophisticated and extensive money laundering scheme involving shell companies, mule accounts, and illegal currency conversion networks was planned by foreign nationals with the help of Indian accomplices.
The case is among an increasing number of cross-border financial frauds that take advantage of regulatory gaps and digital platforms, attracting the attention of law enforcement.
Also Read: ED raids 13 places in Delhi-NCR, Punjab,seizes incriminating docs
Follow us
