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 According to ED officials, funds collected through various bogus or shell entities were layered and ultimately withdrawn through cash and siphoned off to Dubai by conversion to crypto, virtual assets, or through hawala channels.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.
Related News Articles
India's Rise to Realty Prominence: A Billion-Dollar Boom
India is accelerating to become the real estate capital of Asia, with a total valuation of Rs 14.2 trillion among the top 100 realty companies.
Maharashtra Cabinet Renames Pune Airport After Sant Tukaram Maharaj
The Maharashtra Cabinet has approved a proposal to rename Pune airport after the 17th-century Warkari saint and poet, Sant Tukaram Maharaj.
The Downfall of Real Estate Moguls: Alexander Brothers Arrested in Miami
In a shocking turn of events, the renowned real estate moguls, the Alexander Brothers, were recently arrested in Miami. This news has sent ripples through the business community, leaving many to wonder what led to their downfall.
Luxury Homes, Toxic Air: The Urban Pollution Paradox in India
Nithin Kamath, a prominent real estate analyst, highlights the growing concern of urban pollution in major Indian cities like Delhi, Mumbai, and Bengaluru. Despite seeing a surge in luxury real estate, these cities struggle with alarming levels of air pol
Tragic Incident: Two Workers Killed, One Injured as Slab Collapses in Chikhla Mines
A devastating slab collapse in the Chikhla mines of Manganese Ore (India) has resulted in the death of two workers and left one injured. The incident has raised serious concerns about safety protocols in the mining industry.
Women Home Buyers Witness 14% Surge in 2024: Report
A recent report by Square Yards, titled 'Key Holders of Change - Women Driving Real Estate Growth and Transformation,' reveals a significant 14% increase in women homebuyers in 2024.