Officials of the Enforcement Directorate (ED) on Thursday, November 17, arrested Misbahuddin S, a managing partner of the Injaz International group. He was arrested in connection with a money laundering case believed to be worth over Rs 250 crore. The ED alleged his involvement in siphoning and transferring huge funds by luring depositors with promises of high returns.
Misbahuddin appeared in the Prevention of Money Laundering Act (PMLA) court and was taken into custody by ED until November 19. Based on an FIR filed by Bengaluru's Wilson Garden Police Station under the Prize Chits and Money Circulation Schemes (Banning) Act, 1982, the Chit Funds Act, and the Cheating statutes against Injaz International and Associated Group, the ED initiated a money laundering probe. According to the FIR and the ED investigation, Injaz International ran investment schemes, attracting depositors with promises of large returns since 2016. The business allegedly did not submit income tax reports or conduct audits while funnelling money via several different bank accounts.