ED seizes ₹3.70 crore in Bengaluru online ad fraud case

The Directorate of Enforcement (ED), Bengaluru Zonal Office, has provisionally attached bank balances worth approximately ₹3.70 crore in connection with an alleged online advertisement viewing fraud. The action, taken on July 22, is part of a money laundering investigation under the Prevention of Money Laundering Act (PMLA), 2002.

The attached assets belong to JAA Lifestyle India Private Limited, a company accused of running a membership-based scheme that promised earnings for viewing digital advertisements. According to the ED, the company collected about ₹4.29 crore from the public between December 6, 2020, and June 4, 2021.

The probe stems from a First Information Report (FIR) filed by the Magadi Road Police Station in Bengaluru against the company’s directors and others under various sections of the Indian Penal Code. The ED’s investigation revealed that individuals were approached via WhatsApp and other online platforms and lured with promises of easy money by watching advertisements.

Interested persons were required to register on the company’s online platform and pay ₹1,109 (including GST) to obtain permanent membership. This payment made them eligible for the purported earning programme. However, the ED alleges that the company did not provide any genuine opportunity to earn money. Instead, funds collected from members were allegedly diverted for the personal expenses and benefit of the company’s directors.

Provisional attachment under Section 5(1) of the PMLA allows authorities to seize assets believed to be proceeds of crime before a full trial. The ED has stated that further investigation under the PMLA is ongoing. The accused will have an opportunity to represent their case before the Adjudicating Authority, which will decide on the confirmation of the attachment.

This case highlights the growing misuse of digital platforms for fraudulent schemes. Authorities have repeatedly warned citizens to exercise caution when approached with offers that seem too good to be true. The ED’s action is part of a broader effort to crack down on financial crimes and recover illicitly obtained assets.

As the investigation continues, more details are expected to emerge. The company and its directors have not yet issued a public response to the allegations. Legal experts note that provisional attachment does not amount to a final determination of guilt, and the accused retains the right to defend themselves in court.