Massive Crackdown by Enforcement Directorate: 707 Acres of Prime Land in Aamby Valley Attached in Sahara Ponzi Scam Case Worth ₹1,460 Crore

(Judicial Quest News Network)

Kolkata, April 2025 – In a noteworthy development in the ongoing investigation into the financial misdeeds of Sahara India and its group entities, the Directorate of Enforcement (ED), Kolkata, has provisionally attached an extensive land parcel measuring approximately 707 acres in and around Aamby Valley City, Lonavala. The seized property is estimated to hold a market value of ₹1,460 Crore. This action has been taken under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

Land Bought in Benami Names with Misappropriated Funds

According to the ED, the land was purchased using funds allegedly siphoned off from various Sahara group entities and was registered under benami (fictitious) names, concealing the true ownership. The attached assets are believed to be proceeds of crime, originating from a large-scale Ponzi scheme operated by Sahara through a network of cooperative societies and companies.

Origin of Investigation: Widespread FIRs Across States

The ED’s investigation was initiated on the basis of three FIRs filed under Sections 420 (cheating) and 120B (criminal conspiracy) of the Indian Penal Code, 1860, by the Odisha, Bihar, and Rajasthan Police. These complaints were lodged against M/s Humara India Credit Co-operative Society Ltd. (HICCSL) and other Sahara-affiliated entities.

Additionally, over 500 FIRs have been registered against Sahara group entities and individuals across the country. Alarmingly, more than 300 of these FIRs pertain to offences classified as scheduled offences under the PMLA, highlighting the scale of alleged financial fraud.

Modus Operandi: A Complex Ponzi Web

The ED’s probe uncovered that Sahara was operating an elaborate Ponzi scheme through multiple entities including:

• Humara India Credit Cooperative Society Ltd. (HICCSL)
• Sahara Credit Cooperative Society Ltd. (SCCSL)
• Saharayn Universal Multipurpose Cooperative Society (SUMCS)
• Stars Multipurpose Cooperative Society Ltd. (SMCSL)
• Sahara India Commercial Corporation Ltd. (SICCL)
• Sahara India Real Estate Corporation Ltd. (SIRECL)
• Sahara Housing Investment Corporation Ltd. (SHICL)

These entities allegedly lured depositors with promises of high returns, and incentivized agents with generous commissions, collecting massive amounts of public funds. However, the funds were not used in any regulated or transparent manner. Instead, the group engaged in financial manipulation, diversion of funds, and deliberate misrepresentation in their accounting.

The Sahara group reportedly forced depositors to reinvest their maturity amounts instead of paying them out. Deposits were arbitrarily transferred between schemes and entities, often without the depositor’s consent, to mask non-repayment. Reinvested amounts were falsely shown as fresh deposits in the books, a strategy used to sustain the Ponzi structure.

Misuse of Funds and Lavish Expenditures

Investigations further revealed that significant portions of the misappropriated funds were diverted for personal use, including lavish lifestyle expenses and the creation of benami assets. The group also sold off certain Sahara-owned properties, accepting partial payments in undisclosed cash, thereby further evading legal accountability and depriving investors of their rightful dues.

Ongoing Investigation: Seizures and Statements

During the course of the investigation, the ED conducted multiple searches under Section 17 of the PMLA, resulting in the seizure of unaccounted cash amounting to ₹2.98 Crore. Moreover, statements of several individuals—ranging from depositors and agents to employees and other associated persons—have been recorded under Section 50 of the PMLA to aid the investigation.

The probe is still underway, and further actions, including attachments, arrests, and prosecutions, are expected as the ED continues to unravel one of the country’s most high-profile financial scandals.