ED Arrests COO in ₹792 Crore Fraud Linked to Invoice Discounting Scheme

Arrest of Aryan Singh in Major Fraud Case

On Tuesday, the Enforcement Directorate (ED) apprehended Aryan Singh, the Chief Operating Officer of Capital Protection Force Pvt. Ltd., in relation to a significant fraud amounting to ₹792 crore associated with the company's 'Falcon Invoice Discounting Scheme.'

This arrest was executed under the Prevention of Money Laundering Act (PMLA), 2002, as part of an ongoing investigation involving the company, its promoter Amardeep Kumar, and several others, as reported by the agency on Wednesday. Following the arrest, Singh was presented before the Special PMLA Court, which ordered him to be held in judicial custody for 14 days.

The ED's inquiry is based on three FIRs lodged by the Economic Offences Wing in Cyberabad, which accuse Amardeep Kumar, Capital Protection Force Pvt. Ltd., and their associates of defrauding investors by promising exorbitant returns. Investigators discovered that under the pretense of the 'Falcon Invoice Discounting Scheme,' investors were lured with the promise of profits from funds allegedly utilized for invoice discounting, a business that never actually took place.

The ED claims that Aryan Singh, in his role as COO, was instrumental in managing the operations of this fraudulent scheme in collaboration with Amardeep Kumar. Despite being aware of the lack of a legitimate business, Singh oversaw teams that promoted the scheme, engaged with investors to foster trust, and facilitated the diversion of funds. He reportedly gained ₹2.88 crore through five personal bank accounts and his company, Karaoi (OPC).

Amardeep Kumar has been identified as the principal architect of the scam, having even launched the 'Falcon Invoice' app to attract investor deposits. The ED estimates that investors were defrauded of nearly ₹792 crore.

To date, the agency has confiscated a Hawker 800A aircraft, attached assets valued at ₹18.14 crore, and arrested Sandeep Kumar (Amardeep's brother) along with chartered accountant Shard Chandra Toshniwal in connection with this case.