The Enforcement Directorate (ED) has initiated a money laundering investigation into an alleged Rs 91.63 crore digital investment scheme linked to the Q-Fon app, based on an FIR registered by the Thane Police’s Economic Offences Wing (EOW).

According to officials, the ED conducted searches at 10 premises in Ahmedabad and three in Surat, allegedly linked to directors of Q-Fon entities and certain individuals or firms suspected of receiving investor funds.

The searches were carried out under the Prevention of Money Laundering Act (PMLA) and are aimed at recovering financial documents, digital records, and other material to help trace the movement of funds.

The case pertains to a digital investment plan that allegedly promised returns between 2 per cent and 10.5 per cent per month, claiming to generate revenue through online advertisements on mobile applications. As per the EOW’s findings, multiple mobile apps were reportedly floated between May 2020 and January 2024, and a large number of investors were drawn in through promotional messages and referral schemes.

Preliminary findings suggest that at least 124 investors collectively invested more than Rs 91 crore through both online transfers and cash deposits. The company later ceased operations, leaving investors unable to recover their money.

Investigators have stated that the so-called “returns” were allegedly paid out using fresh investments from new participants, resembling the structure of a Ponzi-style scheme. When the inflow of new investors slowed down, the operators are suspected to have diverted the remaining funds through multiple linked accounts and associated entities.

Following the registration of the FIR by the EOW, Thane, the ED’s Mumbai unit has recorded an Enforcement Case Information Report (ECIR) under PMLA to examine the suspected layering and movement of funds. Sources said that initial scrutiny indicates a network of interlinked accounts and shell companies that may have been used to circulate or conceal the proceeds.

A senior ED official said that the ongoing searches are intended to gather evidence and verify the nature of transactions, adding that the investigation remains at a preliminary stage.

The case was initially identified by the Vartak Nagar Police and later transferred to the EOW, which is probing it under relevant sections of the Indian Penal Code (Sections 406, 409, 420, and 34) and provisions of the Maharashtra Protection of Interest of Depositors (MPID) Act. The ED’s probe focuses on the financial trail and potential laundering aspects arising from the same complaint.

Officials said further examination of digital data and financial statements is underway, and appropriate action will be taken based on the findings of the investigation.

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