Kochi: The Enforcement Directorate (ED), investigating the multi-crore Highrich money laundering scam, has arrested the company's promoter Kolatt Dasan Prathapan (43) Thursday night, said the agency's public prosecutor MJ Santhosh.
Prathapan was called to the ED's office in Kochi in the morning and after day-long questioning he was arrested for money laundering under section 4 of the Prevention of Money-Laundering Act (PMLA), he said. "He will be produced before the special PMLA court in Kochi tomorrow," Adv Santhosh said on Thursday.
Thrissur-based Highrich Online Shoppe Private Limited, promoted by Prathapan and his wife Sreena Prathapan (35), is accused by ED of illegally raising around Rs 1,500 crore from the public through pyramid schemes using its online grocery shop and Highrich cryptocurrency as cover.
ED has estimated that the promoters and leaders at the top of the pyramid have siphoned around Rs 250 crore and returned the rest to the depositors.
To date, ED has attached or frozen assets worth Rs 260 crore of the promoters under the PMLA.
However, Kerala Police, before handing over the case to the CBI, estimated that Highrich promoters raised Rs 3,141.34 crore as deposits from the public. Kerala Police were investigating the case under the Banning of Unregulated Deposit Scheme (BUDS) Act.
Prathapan's arrest by ED comes around five months after the promoter couple gave the central agency a slip in Thrissur on January 23. ED had reached their office and house to conduct searches.
The couple then approached the Special Court seeking anticipatory bail, and on February 12 told the court that they would cooperate with ED's investigation. On February 19, Prathapan and Sreena appeared before ED and the investigators questioned them for 10 days on a trot.
They called Prathapan for questioning again on July 4 and arrested him late in the night. In December 2023, Highrich promoter Prathapan was arrested by the Kerala GST intelligence wing on charges of evading taxes to the tune of Rs 126 crore. It was billed as the biggest tax evasion to date in the state.
