ED attaches assets worth ₹394cr in 'Bikebot' Ponzi scam
What's the story
The Enforcement Directorate (ED) has attached assets worth over ₹394 crore in connection with the alleged 'Bikebot' Ponzi scam that was reported from Uttar Pradesh. The action was taken under the anti-money laundering law. The properties, which are valued at ₹394.42 crore, are owned by Kamakhya Educational and Social Welfare Trust, Kamakhya Educational Society, Guru Nanak Charitable Trust, Alpine Technical Education Society, AP Goyal Charitable Trust, and an individual named Meena Anand.
Asset details
ED's statement on attached assets
The ED issued a statement detailing the nature of the attached assets. It said, "The present attachment covers immovable properties and released mortgaged land worth ₹20.49 crore (valued at ₹389.30 crore) at the time of commission of the predicate offense, as well as fixed deposits aggregating to ₹5.12 crore." This highlights both real estate holdings and financial assets involved in this case.
Scam details
What is the 'Bikebot' Ponzi scheme?
The 'Bikebot' Ponzi scheme, linked to Garvit Innovative Promoters Ltd. (GIPL) and its promoter Sanjay Bhati, was a "highly lucrative" investment plan disguised as a 'Bike Taxi.' Investors could invest in one to seven bikes, which would be managed by the company. In return, they were promised monthly rent, EMI, and bonuses for investing in multiple bikes. Additional incentives were also promised for bringing in more investors under a binary/Multi-Level Marketing (MLM) structure.
Fund diversion
Funds raised were diverted to various associated companies: ED
The ED's investigation into the 'Bikebot' scam revealed that the funds raised were diverted to various associated companies and later laundered through educational trusts, societies, and individuals. These diverted funds were used to buy properties in Meerut and release mortgaged properties from banks. The agency had conducted raids in this case in 2020 and 2023, attaching assets worth ₹220.78 crore so far.