ED arrests two in ₹1,417.86 crore investment fraud defrauding 35,759 investors

It matters to citizens as it details the scale of the fraud (approx. ₹1,417.86 Crore) and the specific mechanisms used to defraud approximately 35,759 investors.

Who it concerns: S. Naveen Kumar (Proprietor of M/s Unique Exports), S. Muthuselvam, M/s Unique Exports, East Valley Agro Firms, M/s Dhanyasree Enterprises, M/s Universe369 Infra Private Limited, and approximately 35,759 investors.

What the ED says it did

• S. Naveen Kumar and S. Muthuselvam were arrested on 29.09.2026 under Section 19 of the Prevention of Money Laundering Act, 2002 (PMLA).
• The investigation was initiated based on an FIR registered by the District Crime Branch, Erode, Tamilnadu Police.
• The accused operated investment schemes (UNI, FNP, FAP, UNR) promising high returns from agricultural exports, although no substantial exports were undertaken.
• Approximately ₹1,417.86 Crore was mobilised from about 35,759 investors.
• Approximately ₹719 Crore was found deposited in bank accounts of entities related to Unique Exports.
• Funds were routed through more than 100 bank accounts held in the names of the companies, family members, and associates.
• ₹390.90 Crore was recorded as salary payments despite only four persons working in the concern.
• ₹79.56 Crore was recorded as onion and commodity purchases without actual purchases.
• S. Muthuselvam received approximately ₹12.72 Crore in returns and commissions against an investment of approximately ₹42.10 lakh.
• The Hon’ble Special Court, PMLA, granted 15 days of judicial custody to both accused.
• ED conducted searches at nine premises on 16.06.2026 and 17.06.2026.

Also in the document

• The ED stated that the transactions involving salary and commodity purchases were used to layer and conceal investor funds under the guise of business expenditure.
• S. Naveen Kumar is identified as the mastermind who controlled banking operations and movement of funds.
• S. Muthuselvam is identified as playing a central role in devising schemes, mobilising investors, and routing funds through personal accounts and connected entities.