The Enforcement Directorate (ED) has frozen shares worth Rs 4.3 crore and seized Rs 2.51 crore in cash during raids linked to its probe into the alleged Rs 91.63-crore Q-Fon Digital investment scam. The agency suspects that part of the defrauded investors’ money was channelled into the stock market to conceal its illegal origins.
The money-laundering investigation, launched under the Prevention of Money Laundering Act (PMLA), stems from an FIR filed by the Thane Police’s Economic Offences Wing (EOW). Acting on leads, the ED recently conducted searches at 10 premises in Ahmedabad and three in Surat, all linked to directors of Q-Fon companies and individuals suspected of handling investor funds.
Officials said investigators have recovered financial records, digital data, and investment documents, which are now being analysed to trace how the funds were layered through multiple accounts before being converted into shares and other assets.
The case revolves around the Q-Fon App, a mobile-based investment platform that promised unrealistic monthly returns ranging from 2 per cent to 10.5 per cent. Between May 2020 and January 2024, hundreds of people were lured into investing under the pretext that their money would generate profits through online advertising revenue.
However, investigators found that payouts to early investors were made using deposits from new ones, a textbook Ponzi scheme. When the inflow of fresh funds slowed, the operators allegedly siphoned off large amounts to other entities and stock market investments.
“We believe a portion of the crime proceeds was parked as shareholdings and other market-linked instruments. Freezing these assets was essential to prevent further diversion,” said an official source.
The scam was first registered at the Vartak Nagar police station before being transferred to the Thane EOW. Offences have been recorded under Sections 406, 409, 420, and 34 of the Indian Penal Code, along with provisions of the Maharashtra Protection of Interest of Depositors (MPID) Act.
