The Enforcement Directorate (ED) revealed that it conducted searches at eight locations in Tamil Nadu and Kerala regarding a money laundering investigation involving M/s Dream Makers Global Pvt. Ltd. (DMGPL). The company is accused of running a multi-level marketing and Ponzi scheme that allegedly defrauded numerous investors by promising high returns on investments. These searches were carried out under the Prevention of Money Laundering Act (PMLA), 2002.
The ED stated that the searches took place on June 30 at properties associated with the company in Coimbatore and Krishnagiri districts of Tamil Nadu, as well as in Malappuram and Thrissur districts of Kerala. The investigation was initiated based on a First Information Report (FIR) filed by the Economic Offences Wing of the Tamil Nadu Police, citing offences under various sections of the Indian Penal Code, which are considered scheduled offences under the PMLA.
According to the ED, Dream Makers Global Pvt. Ltd. and its key executives allegedly raised significant amounts of money from the public through investment opportunities in software projects, promising high daily returns and doubling investments within 150 days. While initial returns were paid to attract more deposits, the company reportedly failed to make subsequent payments, leading to substantial financial losses for many depositors in the region.
The ED implicated the company’s former Managing Director S. Sathish Kumar, Director Gunavathy, and manager Mugunthan Nair in orchestrating the scheme. Gunavathy and her husband Sathish Kumar were said to have jointly managed the company and collected public deposits, while Mugunthan Nair allegedly organized promotional events to entice investments with false assurances of guaranteed returns. The agency also alleged that substantial sums obtained as commissions and investment proceeds were diverted to purchase properties, vehicles, and personal assets.
During the searches, officials seized incriminating documents, digital records, diaries, and information on properties allegedly acquired using illicit funds. Additionally, bank accounts, fixed deposits, and other financial instruments associated with the accused and their associates were identified, with many already frozen by other law enforcement agencies. The ED confirmed that the investigation into the money laundering case is ongoing.
