The Enforcement Directorate (ED) carried out searches at nine locations in Ghaziabad, Lucknow, Sriganganagar and Mumbai on Monday under the Prevention of Money Laundering Act (PMLA), in connection with its investigation into an alleged ‘ponzi scheme’ involving the Sahara Group.

In a statement, the agency’s Kolkata zonal office said the probe is into Humara India Credit Cooperative Society Ltd and several other Sahara Group entities.

The ED’s probe stems from three FIRs filed in Odisha, Bihar, and Rajasthan under Sections 420 and 120B of the Indian Penal Code, along with more than 500 other FIRs registered against the group nationwide.

Over 300 of these cases involve scheduled offences under the PMLA.

According to the ED, Sahara Group allegedly ran a massive ponzi scheme through companies including HICCSL, SCCSL, SUMCS, SMCSL, SICCL, SIRECL, and SHICL. “The funds were managed in an unregulated manner without depositor oversight, maturity proceeds were not repaid, and books were manipulated to camouflage such non-repayments,” the agency stated.

Investigators claim the group continued to collect fresh deposits despite financial incapacity, diverting funds for questionable share transactions, benami asset creation, and personal expenses. “Despite financial incapacity, the group continued to collect deposits, part of which was siphoned off for dubious share transactions, creation of benami assets and personal expenses,” the ED added.

During Monday’s raids, officials claimed to have seized incriminating documents and records, and recorded statements from key individuals. The agency has previously issued three provisional attachment orders in the case, freezing 707 acres in Amby Valley valued at nearly Rs 1,460 crore, 1,023 acres in Sahara Prime City Ltd worth Rs 1,538 crore, and movable assets belonging to Chandni Roy, wife of Sahara Group’s Seemanto Roy, valued at Rs 14.75 crore.