SRINAGAR: The Directorate of Enforcement (ED) has intensified its investigation into M/s Vuenow Marketing Services Ltd. and its associated entities, raising serious concerns among investors, particularly in Kashmir, where hundreds are reportedly said to have invested substantial sums in the company.
According to the Srinagar-based news-gathering agency Kashmir Dot Com, the case involves allegations of financial irregularities under the Foreign Exchange Management Act (FEMA), 1999, and the Prevention of Money Laundering Act (PMLA), 2002. The ED has conducted multiple searches and uncovered incriminating evidence, leading to apprehensions of a scam.
“Directorate of Enforcement (ED), Jalandhar Zonal Office has conducted search operations at fourteen locations in Mohali (Punjab), New Delhi, Noida (Uttar Pradesh), Ghaziabad (Uttar Pradesh), and Mumbai (Maharashtra) on 17.10.2024 under the provisions of section 37 of the Foreign Exchange Management Act (FEMA), 1999, in connection with investigation regarding receipt of huge and irregular foreign inward remittances by M/s Vuenow Marketing Services Ltd., M/s Vuenow Infotech Pvt. Ltd. and M/s Zebyte Rental Planet Private Ltd. in lieu of providing database and data processing services,” the ED said in its press release dated October 17, 2024.
“The searches conducted at the office premises of the said companies and residences of key persons related to them have resulted in the recovery and seizure of Indian currency of Rs. 30.50 lakh, foreign currency of 6410 Euros, 3062 USD, 05 Singapore Dollars, 2750 Swiss Franc, digital devices, and various incriminating documents under the provisions of FEMA, 1999. Further investigation is under progress,” they said.
In another press release issued on Thursday, the ED revealed more findings, stating, “Directorate of Enforcement (ED), Jalandhar Zonal Office has conducted search operations at five locations in Mohali (Punjab) and Noida (Uttar Pradesh) on 26.11.2024 under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 in connection with money laundering investigation against M/s Vuenow Marketing Services Ltd. and related entities and persons.”
“During the search operations, various incriminating documents and records were recovered and seized. ED initiated an investigation on the basis of an FIR registered by Gautam Budh Nagar (Noida) Police, Uttar Pradesh under various sections of BNS, 2023. The FIR was registered on the basis of information shared by ED under PMLA, 2002,” the ED said.
“ED investigation revealed that M/s Vuenow Marketing Services Ltd., in connivance with other entities viz. M/s Vuenow Infotech Pvt. Ltd., M/s Zebyte Infotech Pvt. Ltd., and M/s Zebyte Rental Planet Pvt. Ltd., induced various investors to invest their money in the guise of selling them cloud particles and leasing back those particles (SLB model) on the promise of high rental returns, without having any substantial infrastructure for the same. Further investigation is under progress,” the fresh press release of ED stated.
Moreover, the case is also pending before the Punjab and Haryana High Court. During a hearing on November 6, the court noted procedural adherence by the ED under FEMA.
“Mr. Satya Pal Jain, learned Additional Solicitor General of India, appearing on behalf of the respondents, seeks and is granted time to file an affidavit, pointing out that the procedure prescribed by Section 37 of the Foreign Exchange Management Act, 1999, read with Section 132 of the Income Tax Act, 1961, was followed during the procedure of search and seizure. List on 27.11.2024,” the division bench comprising Chief Justice Sheel Nagu and Justice Anil Kshetarpal had said in its interim order dated November 6, 2024.
The case has now been scheduled for its next hearing on December 4, 2024, after its listing on November 27. However, no updates are available regarding proceedings or outcomes from the November 27 hearing.
The revelations have sent shockwaves through Kashmir, where a significant number of people have invested their savings in crores in the company’s schemes.
This development brings back memories of the infamous ‘Curative Survey’ scam that surfaced last year in Kashmir. A Tamil Nadu-based company, under the guise of promising high returns, defrauded hundreds of Kashmiris. The police arrested one accused, froze bank accounts, and initiated a probe into the involvement of local contacts and influencers. Victims of that scam highlighted how unemployment and desperation made them vulnerable to fraudulent schemes.
Kashmir Dot Com has reached out to M/s Vuenow Marketing Services Ltd. for their official response to these allegations. This story will be updated as and when their response becomes available. (KDC)
