ED arrests CA Sharad Chandra Toshniwal in ₹792 cr Falcon scam

Hyderabad: Directorate of Enforcement, Hyderabad Zonal Office, arrested chartered accountant Sharad Chandra Toshniwal on wednesday under the Prevention of Money Laundering Act (PMLA), 2002. He was produced before the Special PMLA Court the same day and remanded to 14 days judicial custody. The arrest is linked to an ongoing probe against Capital Protection Force Pvt. Ltd., its director Amardeep Kumar and others.

The ED launched its investigation on the basis of three FIRs registered by the Economic Offence Wing, Cyberabad. According to the FIRs, Amardeep Kumar, Capital Protection Force Pvt. Ltd. and associates cheated investors by promising high returns.

Falcon Invoice Scheme and Role of Auditor

The probe revealed that Capital Protection Force Pvt. Ltd. floated the ‘Falcon invoice discounting scheme’ claiming to provide funds for invoice discounting in exchange for assured returns. The company, however, failed to return investors’ money. Investigators found that Amardeep Kumar developed the Falcon invoice app to collect deposits, but no real invoice discounting business was conducted. Investors were allegedly cheated of about ₹792 crore.

According to the ED, Toshniwal, statutory auditor of the company since its incorporation, was aware of the fraudulent operations. He managed finances of entities linked to Amardeep Kumar and his family and assisted in laundering proceeds of crime through Rhett Healthcare Pvt. Ltd., Rhett Herbal Pvt. Ltd., RDP Workstations Pvt. Ltd. and Swastik Ghee Pvt. Ltd. Toshniwal acquired shares in these companies in the names of relatives and benamis. The agency said he arranged cash worth ₹14.81 crore by routing proceeds without business justification.

In this case, ED has already attached assets worth ₹18.14 crore and arrested Sandeep Kumar, brother of Amardeep Kumar.