The Enforcement Directorate (ED) of India has seized a commercial hotel property worth $3.5 million in the popular tourist place Pamban Island of Rameswaram town in Tamil Nadu, allegedly belonging to an accused involved in running a cryptocurrency-related scam forex trading platform.
According to ED officials, a team of ED Kolkata seized properties worth Rs 30 crore ($3.5 million), including 60 hotel rooms and vacant land located in Rameswaram, Tamil Nadu, belonging to TP Global FX, an illegal forex trading platform whose owners had defrauded thousands of victims in India by luring them with high returns in cryptocurrency-related investments.
These properties were previously owned by two companies, M/s KK Traders and TM Traders. On Thursday, the ED had seized these properties under the Prevention of Money Laundering Act (PMLA), 2002, a law that helps stop illegal money activities.
The ED has announced this on its X post, stating that “ED, Kolkata, has taken possession of the confirmed attached immovable properties worth ₹30 crore in the form of 60 hotel rooms and vacant land situated at Seven Hills Pamban Island Resort, Rameswaram, in the matter of M/s TM Traders & M/s KK Traders (TP Global FX) under the provisions of the PMLA, 2002.”
The investigation started because of a case first filed by the Kolkata Police against these companies for suspected illegal activities, likely related to money laundering. In simple terms, the ED has taken over these valuable properties as part of its efforts to crack down on illegal financial dealings by these companies.
Further, the Reserve Bank of India (RBI) has also stated that TP Global FX is not registered with them and is not allowed to do forex trading. In September 2022, the RBI warned the public about TP Global FX and other unauthorized trading platforms to protect people from scams.
The Enforcement Directorate (ED) investigated and found that three people, Prasenjit Das, Tushar Patel, and Shailesh Kumar Pandey, created a complex scam. They used fake companies to trick people into investing in TP Global FX, promising big profits from forex trading and fake crypto investment schemes.
The investigation by the Enforcement Directorate (ED) found that the money collected from investors by TP Global FX was not used for trading or investments as promised. Instead, Tushar Patel and his associates took the money and used it to buy personal things, like property or other assets, for themselves.