The Detection of Crime Branch is likely to hold Saiyed responsible for violating the Enforcement Directorate's Prevention of Money Laundering Act (PMLA) and converting black money to white, sources close to the development said.
The Detection of Crime Branch (DCB) is reportedly planning to file a fresh case against alleged Ponzi scamster Imtiyaz Saiyed. The DCB is likely to hold Saiyed responsible for violating the Enforcement Directorate's Prevention of Money Laundering Act (PMLA) and converting black money to white, sources close to the development said.
Saiyed, managing director of the firm Imtsons Investment Pvt Ltd, was arrested by the DCB on June 3 after eight investors lodged a complaint against him. The investors had accused the firm of cheating them of Rs10 lakh. Saiyed's firm is believed to have collected Rs85 crore from different investors through Ponzi schemes.
Sources said if PMLA is applied, even the people who had invested money in the Ponzi schemes may have to furnish proof of investment to prove that the money they had invested was not illegal. If they fail to give such a proof, the investment will be considered as black money and they, including the complainants against Saiyed, may also come under the DCB's scanner and be booked in the case.
Moreover, if PMLA is applied, the DCB may have to hand over the case to the Enforcement Directorate (ED), said police sources.
Sources also added that Saiyed had reportedly not taken permission from Sebi for issuing share certificates and that the DCB is likely to take appropriate action after further investigation.
The agency is also likely to widen the probe to investigate the involvement of his wife Riyaz Unusha, director of Imtsons, and son Faraz in the fraud.
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