Rs 3 Crore Auction: ED Sells Seized Hawker Aircraft in Ponzi Case

The Enforcement Directorate (ED) has auctioned a Hawker 800A aircraft seized in connection with a money laundering case linked to a ponzi scheme worth Rs 792 crore. The aircraft, which was confiscated from Rajiv Gandhi International Airport in Hyderabad in March last year, was sold for Rs 3 crore through the public sector undertaking MSTC Limited on Wednesday.

The proceeds from the auction will be used for restitution to genuine investors as per the provisions of the Prevention of Money Laundering Act (PMLA), subject to the orders of the special court, the agency stated.

The money laundering investigation was initiated against Capital Protection Force, a Hyderabad-based company, its promoter Amardeep Kumar, and others based on three first information reports (FIRs) lodged by the Economic Offences Wing (EOW) of Cyberabad. Kumar is the chairman and managing director of the Falcon Group, which owns Capital Protection Force.

The ED has alleged that Kumar and his associates defrauded a large number of investors through a ponzi scheme, collecting approximately Rs 792 crore under the guise of an invoice discounting scheme. The company promised high returns but did not conduct any actual invoice discounting business. The funds were instead used for personal gain and other purposes.

This auction marks the first time the ED has sold an aircraft through a public sector undertaking. The Hawker 800A is a mid-size business jet that was previously owned by the accused company. The sale is part of the ED's efforts to recover assets and compensate victims of financial fraud.

The case is being closely monitored by the special court, which will oversee the distribution of the auction proceeds to the investors who have been identified as genuine victims. The investigation is ongoing, and further asset seizures or auctions may follow.