₹10,000-Crore SAGA Ponzi Scam: ED Raids Mumbai, Bhopal Premises; Freezes Assets Worth ₹30 Crore
(Judicial Quest News Network)
New Delhi: The Directorate of Enforcement (ED) has intensified its money-laundering investigation into the alleged ₹10,000-crore SAGA Group Ponzi scam, carrying out a series of searches across Mumbai and Bhopal and uncovering what investigators suspect to be an elaborate financial network involving shell entities, hawala channels and the diversion of funds collected from thousands of investors.
The ED Headquarters Unit, New Delhi, conducted search operations from August 13 to August 16, 2026, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, at multiple residential and business premises allegedly linked to Sameer Agarwal and his associates.
The searches were undertaken in connection with the affairs of Loni Urban Multistate Credit & Thrift Co-operative Society (LUCC) and other affiliated cooperative societies associated with the SAGA Group.
Assets Worth Over ₹30 Crore Frozen
During the extensive search operation, the ED seized a substantial volume of incriminating documents and material evidence and froze Proceeds of Crime valued at more than ₹30 crore.
The frozen assets include listed shares and securities, mutual funds, LIC policies, bank balances and other financial investments, besides nine high-end vehicles allegedly acquired from the proceeds of the suspected criminal activity.
The agency also seized ₹1.53 crore in cash, foreign currency valued at approximately ₹35 lakh, and gold jewellery and silver bullion worth around ₹5.25 crore.
The seizures, according to the ED, provide further leads into the alleged movement and deployment of funds generated through the investment schemes promoted by the SAGA Group.
₹10,000 Crore Allegedly Mobilised from the Public
The ED investigation stems from multiple FIRs registered by police authorities in Uttar Pradesh, Madhya Pradesh and other States against LUCC and its affiliated group of cooperative societies.
According to the investigation, since 2009, members of the public were allegedly induced to invest their money in recurring deposits, fixed deposits and monthly income schemes promoted by the SAGA Group.
Investors were allegedly lured with promises of assured and unusually high returns, with claims that their investments would double or even triple within three to five years.
The schemes were reportedly accompanied by incentives and gifts, including promises of cars.
The investigation has indicated that these promises were allegedly made without any genuine underlying business activity capable of generating such extraordinary returns.
Using what the ED describes as fake banking infrastructure and unrealistic return assurances, the SAGA Group allegedly collected more than ₹10,000 crore from the public.
Initial Payouts Allegedly Used To Sustain the Scheme
The investigation has further revealed that, in the initial stages, investors were allegedly provided certain payouts, which helped sustain confidence in the schemes and attract further investments.
However, the agency alleges that a substantial portion of the funds was subsequently diverted by Sameer Agarwal and his associates for personal aggrandisement, besides payments made as market commissions to agents and other associates.
According to the ED, the money collected from investors was predominantly received in cash and moved through regional cash chests before being allegedly siphoned off by the promoters.
The diverted funds were subsequently used for acquiring movable and immovable assets in India and abroad, allegedly through a complex web of shell companies and hawala channels.
Web Of More Than 50 Shell Entities Unearthed
The investigation has reportedly brought to light an extensive network of more than 50 shell entities, allegedly controlled through various operators identified by the Directorate.
The agency suspects that these entities were used to layer, transfer and ultimately deploy the proceeds generated from the alleged fraudulent investment operations.
The alleged use of multiple entities, cash channels and hawala networks has added another layer of complexity to the money-laundering probe, with investigators now tracing the ultimate beneficiaries and destinations of the funds.
SAGA Group Chief Said to Be Absconding
The ED has identified Sameer Agarwal, described as the CMD and principal controller of the SAGA Group, as a key figure in the alleged financial network.
According to the agency, Agarwal has left the country and is currently absconding.
The Directorate is continuing to investigate the movement of the alleged proceeds of crime, including their investment in domestic and overseas assets and the role played by various associates and entities in the financial network.
ED’s Earlier Action in The Case
The latest searches form part of a wider enforcement action already undertaken by the agency.
The ED has previously provisionally attached assets in the case through two separate Provisional Attachment Orders.
It also arrested Ravi Shankar Tiwari, described as a key functionary of the Group, on July 14, 2026, under the provisions of the PMLA.
The agency subsequently filed a Prosecution Complaint before the Special Court on July 24, 2026.
With the latest searches yielding substantial cash, precious metals, financial instruments, vehicles and documentary evidence, the investigation is now expected to focus on tracing the complete money trail, identifying the ultimate beneficiaries and establishing the link between the alleged proceeds of crime and assets acquired through them.
The ED has stated that further investigation is in progress.
The allegations remain subject to adjudication before the competent judicial forum, and the guilt of the accused will be determined in accordance with law.
