The Enforcement Directorate’s Jalandhar Zonal Office has provisionally attached movable properties, including four bank accounts of Crown Credit Cooperative Society Limited, totaling around Rs 4.07 crore. This action is part of an investigation into a Ponzi scheme that defrauded numerous depositors in Punjab. The attachment order was issued under the Prevention of Money Laundering Act, 2002, on February 4, 2026.
The probe stemmed from multiple FIRs filed by the Punjab Police against the cooperative society, its President-cum-Managing Director Jagjeet Singh, Vice President Gurmeet Kaur, and their associates. These cases involve allegations of criminal breach of trust, cheating, and criminal conspiracy, where the accused enticed the public to invest money with false promises of high returns and quick profits.
Investigations revealed that the accused, along with their agents, deceived depositors with misleading representations and promises of substantial profits. Instead of using the funds for legitimate purposes, the money collected from investors was diverted for personal gain and to pay returns to earlier investors, a common characteristic of Ponzi schemes. This deceptive practice created a facade of profitability, attracting more investors and perpetuating the fraud.
To prevent further dissipation of the illicit proceeds and to potentially reimburse affected depositors, the ED has provisionally attached the four specific bank accounts where deposits from victims across Punjab were consolidated. The ongoing inquiry aims to track the flow of funds, identify additional beneficiaries, and trace any assets acquired through illegal means.
Punjab has witnessed a rise in cooperative society scams in recent years, exploiting the trust of the community in financial institutions and preying on middle-class and lower-income families with unrealistic promises of returns, often resulting in severe financial repercussions when these schemes collapse.
