Hyderabad: Enforcement Directorate has arrested Dubai-based businessman Vivek Mohan Seth, a key accused in the ₹794-crore Falcon investment scam, after he was detained by immigration authorities at Mumbai airport while returning from the UAE. A court remanded him to 14 days of judicial custody on Tuesday.Seth had allegedly evaded investigators for nearly a year and was believed to be residing in Dubai during the probe.According to the ED, Seth allegedly played a crucial role in diverting investor funds overseas through a network of dummy accounts. The ED alleged that the transactions were carried out to help alleged scam mastermind Amardeep Kumar layer the proceeds of crime by investing in the equity of foreign companies and acquiring movable and immovable assets abroad.The ED identified Seth as a close associate of Amardeep and the Falcon group. He was reportedly the chief executive officer or a senior representative of Prestige Jets Inc., an aviation company registered in Delaware, US.Prestige Jets owned a Hawker 800A aircraft, which was operated primarily from Dubai as an air ambulance. According to the ED, Seth reportedly arranged $1.6 million from Amardeep for the aircraft’s purchase and facilitated the transfer of funds from Dubai to an escrow account with JPMorgan Chase bank in the US.Investigators alleged that the money originated from an account belonging to Capital Protection Force Private Limited and formed part of the funds collected from investors. Seth was also allegedly involved in appointing pilots, managing aviation operations and representing the company at meetings in Dubai.Investors promised returns of up to 21.95%The case relates to an alleged investment fraud run through Capital Protection Force under the Falcon Invoice Discounting scheme. Thousands of investors were promised annual returns ranging from 11% to 21.95%, purportedly backed by invoices raised by companies such as Amazon, Flipkart and Tata Consultancy Services.The ED alleged that the invoices were fabricated and that returns paid to existing investors were funded using money collected from new investors in a ponzi-like arrangement.According to the agency, Capital Protection Force mobilised ₹4,215 crore from investors, of which around ₹792 crore remained unpaid and has been identified as proceeds of crime.The diverted funds were allegedly routed through related entities and used to acquire properties, gold, silver and the aircraft now under investigation. Amardeep Kumar was recently arrested by the ED as part of the ongoing probe.
