Ranchi, Feb 16 (IANS) The Enforcement Directorate’s Ranchi Zonal Office filed a chargesheet on Monday before the special court in Ranchi under the Prevention of Money Laundering Act (PMLA), against Maxizone Touch Private Limited and its directors, Chander Bhushan Singh and Priyanka.

The case involves a large-scale multi-level marketing fraud that duped 16,927 investors across the country through a classic Ponzi scheme promising unrealistic lifelong monthly returns of 15 per cent, the ED said in a press statement.

The agency initiated its probe based on multiple FIRs lodged by Jharkhand Police at Sakchi and Govindpur police stations in Jamshedpur under various sections of the Indian Penal Code.

The accused allegedly lured investors by assuring high returns through their company, collected substantial funds, and then abruptly halted payments before absconding. Both directors were declared proclaimed offenders on March 3, 2023, the ED said.

Investigations revealed that the company conducted no genuine trading or business activity. Instead, money from new investors was used to pay so-called returns to earlier ones, a hallmark of Ponzi operations.

The accused falsely claimed NSE Authorised Person status to gain credibility and misled the public.

The Reserve Bank of India confirmed the firm had no NBFC registration, further exposing the fraud.

Forensic analysis of digital devices seized from Chander Bhushan Singh uncovered the massive scale of the scam, with total proceeds of crime amounting to Rs 521.69 crore from 16,927 victims. Of this, Rs 249.45 crore was allegedly recycled as fake returns to sustain the illusion of profitability, while Rs 58.27 crore was diverted into real estate, gold jewellery, and cryptocurrency, including 27,457 USDT (United States Dollar Tether).

To conceal these illicit funds and evade authorities, the accused reportedly forged an Aadhaar card in the name of Deepak Singh, it said.

The ED provisionally attached properties worth Rs 11 crore through an order dated December 12, 2025.

Earlier searches across five states yielded incriminating documents, electronic devices, gold jewellery, 27,457 USDT in cryptocurrency, and Rs 10 lakh in cash.

Both directors were arrested on December 16, 2025, under Section 19 of the PMLA and remain in judicial custody at Birsa Munda Central Jail in Ranchi, the ED said.

The agency highlighted how the fraudsters projected laundered proceeds as legitimate assets to mislead law enforcement. The investigation, supported by RBI inputs, continues to trace further assets and unravel the full network.

This case underscores the growing menace of Ponzi and MLM scams targeting unsuspecting investors with promises of quick riches, prompting renewed calls for stricter oversight of such schemes.

–IANS

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