Uttar Pradesh: ED arrests SP politician in Ponzi linked money laundering case

The Enforcement Directorate on Monday said it has arrested an Uttar Pradesh-based state secretary of the Samajwadi Party after it raided his premises in Noida as part of a money laundering investigation linked to the ‘Bike Bot’ alleged Ponzi scam.

Dinesh Kumar Singh alias Dinesh Singh Gujjar was arrested on July 21 and a special Prevention of Money Laundering Act (PMLA) court sent him to ED custody till July 26, the agency said in a statement.

The money laundering case stems from multiple FIRs filed by the Uttar Pradesh Police on the basis of complaints made by certain investors about the ‘Bike Bot’ fraud allegedly committed by Garvit Innovative Promoters Ltd. (GIPL), its promoter Sanjay Bhati and others.

Bhati and others are alleged to have floated lucrative investment scheme in the name of ‘BIKE BOT’ in 2017, the ED said.

As per the scheme, it said, a customer could invest in 1, 3, 5 or 7 bikes which would be maintained and operated by the company and the investors would be paid monthly rental, EMI and bonus (in case of investment in multiple bike). ”The funds so collected were rotated in a fashion akin to a Ponzi scheme and were ultimately used in creation of assets in the name of the company and other persons,” the ED alleged.

Explaining the role of Dinesh Singh Gujjar, a state secretary of the Samajwadi Party in UP, the ED said the politician ”used his network to locate beneficiaries of the proceeds of crime generated through ‘Bike Bot scam’ and by flouting his relations with the ED officials, cast pressure or enticement on his victims to extract money which directly or indirectly was a part of the proceeds of crime.” The agency added that ”incriminating” evidences were seized from the searched premises.