Auditor Arrested by ED in ₹792 Crore Falcon Invoice Scam

Quick Summary:

• The Directorate of Enforcement (ED), Hyderabad Zonal Office, arrested chartered accountant Sharad Chandra toshniwal on August 20 in connection with the Capital Protection force Pvt. Ltd. case involving alleged fraud by amardeep Kumar and others.
• the examination stems from three FIRs filed by the Economic Offense Wing (EOW), Cyberabad, alleging investor fraud under the ‘Falcon invoice discounting scheme’ promising high returns.
• ED found ₹792 crore was siphoned off as the company never conducted invoice discounting but instead used deposits collected through an app called Falcon invoice.
• Toshniwal, as statutory auditor as incorporation, allegedly facilitated fraudulent financial transactions and helped divert criminal proceeds into various companies including Rhett Healthcare Pvt. Ltd., rhett Herbal Pvt. Ltd., RDP Workstations Pvt. Ltd.,and Swastik Ghee Pvt. Ltd.
• Toshniwal allegedly handled ₹14.81 crore in cash dealings linked to laundering activities and acquired shares in benami names for these companies.
• ED previously arrested Sandeep Kumar (brother of Amardeep Kumar) and attached assets worth ₹18.14 crore related to the case; further investigation is underway.

Indian Opinion Analysis:

The allegations against Sharad Chandra Toshniwal underscore notable lapses within professional auditing frameworks when statutory auditors are implicated directly in activities like money laundering or diversion of funds during large-scale frauds such as this one involving ₹792 crore under a fraudulent scheme targeting investors. This raises critical concerns about regulatory oversight mechanisms for financial institutions and auditors that might allow such collaborations between businesses committing offenses.

Moreover, the level of sophistication seen here-via creation of apps like Falcon invoice-points to emerging challenges in combating digital facades shielding illicit activities within India’s rapidly digitizing economy. Investigations into wider networks tied to these entities could have implications for improving anti-money laundering protocols while also reinforcing awareness among individual investors about high-risk schemes promising unrealistic returns.

Fraud cases like this highlight gaps not just at governance levels within corporate structures but also underline systemic issues surrounding investor protection measures that need bolstering nationwide amid growing economic activity fueled by technology-driven platforms.

For further details: Published – August 21, 2025 07:38 pm IST