ED Secures 3-Day Custody of Accused in ₹792 Crore Scam

Quick Summary

• The Special PMLA Court in Hyderabad granted the Enforcement Directorate (ED) three days’ custody of Sandeep Kumar for questioning related to a ₹792 crore fraud scheme.
• Sandeep Kumar was arrested on July 31, 2025, under the Prevention of Money Laundering Act (PMLA), 2002. He was initially remanded to judicial custody for 14 days before ED requested further interrogation.
• The fraud involves Capital Protection Force Pvt. Ltd., its director Amardeep Kumar, and others who allegedly duped investors with false promises of high returns via the Falcon invoice discounting scheme.
• ED alleges that over ₹792 crore collected from investors were misused for personal expenditures such as equity investments, loans, an aircraft purchase, casino spending, and real estate acquisitions linked to Amardeep Kumar and his family members.
• Around ₹4.85 crore was transferred into Sandeep Kumar’s bank account; additionally, two companies he managed alongside his brother reportedly received ₹5.74 crore in illicit funds used for business operations and property acquisitions.
• Assets worth ₹18.14 crore have been attached by ED so far; properties valued at ₹7.65 crore are directly linked to Sandeep Kumar as investigations continue.

Indian Opinion Analysis

The ongoing examination into the alleged financial mismanagement highlights critical issues surrounding investment fraud in India’s growing economy. This case demonstrates how abuse of complex schemes like invoice discounting can lead to massive public losses when regulatory lapses occur or investor awareness is inadequate.

With assets totaling over ₹792 crore purportedly siphoned off through fraudulent mechanisms, this probe could serve as an prospect to strengthen existing safeguards under laws like PMLA against white-collar crimes involving financial institutions or market players promising unrealistic returns.

The involvement of family-run networks and misuse of funds also underscores potential risks associated with trust-based investment models operating without stringent oversight mechanisms-an area that deserves deeper policy consideration moving forward.

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