ED Cracks Down on Multi-Crore Ponzi Scheme in Maharashtra and Gujarat
The Enforcement Directorate (ED) has launched a major crackdown on a multi-crore Ponzi scheme, conducting searches in various locations across Maharashtra and Gujarat. The operation is part of an investigation into illegal forex trading and multi-level marketing schemes run by the VIPS Group of Companies.
Ponzi SchemeEdMaharashtraGujaratVips Group Of CompaniesReal Estate MaharashtraJun 24, 2025
The searches were conducted on Friday at various locations in Kolhapur, Ahmednagar, Pune, and Surat in Gujarat under the provisions of the Prevention of Money Laundering Act. During the course of the search operations, incriminating documents, immovable asset details worth crores of rupees, digital devices, and bank funds were seized or frozen. The accused are alleged to have collected ₹100 crore from the public in the name of various schemes, but ultimately duped them.
The ED initiated its investigation based on a case registered by the Bharati Vidyapeeth police station in Pune against Khute and others. The group is accused of cheating several individuals by promising exorbitant returns through Ponzi and multi-level marketing schemes, as well as through a foreign exchange trading platform. Vinod Khute, who is based in Dubai, is accused of orchestrating multiple illicit multi-level marketing and Ponzi schemes, illegal trading, crypto exchange, and wallet services through the VIPS Group of Companies and a few other firms.
The search operations were conducted on the associates of Khute, who were allegedly involved in enticing people into investing in the bogus and illegal schemes and trading activities of Khute. According to ED officials, funds collected through various bogus or shell entities were layered and ultimately withdrawn through cash and siphoned off to Dubai by conversion to crypto, virtual assets, or through hawala channels.
Earlier, the ED had conducted several search operations and issued provisional attachment orders in the case, resulting in the attachment or freezing of bank balances, movable assets, and immovable properties of Khute and his relatives/associates in India and Dubai, worth ₹75.42 crore in total. The ED's actions are aimed at recovering the illicit funds and bringing the perpetrators to justice.
Frequently Asked Questions
What is the Enforcement Directorate (ED)?
The Enforcement Directorate (ED) is a law enforcement agency in India responsible for enforcing economic laws and fighting economic crime. It operates under the Ministry of Finance.
What is a Ponzi scheme?
A Ponzi scheme is a fraudulent investment operation where returns to earlier investors are paid out of the funds collected from new investors, rather than from profit earned through legitimate business activities.
What are the allegations against the VIPS Group of Companies?
The VIPS Group of Companies, operated by Vinod Khute, is accused of running multiple illicit multi-level marketing and Ponzi schemes, illegal trading, crypto exchange, and wallet services, all of which are alleged to have defrauded the public.
How much money has been seized or frozen by the ED?
The ED has seized or frozen bank balances, movable assets, and immovable properties worth ₹75.42 crore in total, as part of their operations against the VIPS Group of Companies.
Where were the searches conducted?
The searches were conducted at various locations in Kolhapur, Ahmednagar, Pune in Maharashtra, and Surat in Gujarat.
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