KD Prathapan, director of Highrich online shop, has been taken into custody by the Enforcement Directorate (ED) in a financial fraud case. He is accused of smuggling crores of rupees collected from investors abroad through illegal transactions.
Kochi: A special court in Kochi has sent K D Prathapan, director of Highrich to Enforcement Directorate (ED) custody in a financial fraud case on Wednesday (July 17). The ED sought additional time to question Prathapan, but the court only granted custody for one day.
The ED took custody of Prathapan This decision came after the ED questioned investors and Prathapan's wife, Sreena, and suspects that large sums of money were illegally transferred abroad through black money transactions. The ED aims to investigate these transactions further while Prathapan is in custody at Ernakulam District Jail.
The Third Additional Sessions Court earlier upheld the confiscation of assets owned by the accused involved in the Highrich money chain scam. This decision validates the earlier provisional seizure ordered by the Collector, encompassing a diverse range of assets, such as 67 bank accounts, 11 vehicles, and multiple real estate properties.
Following the recommendation of the Director General of Police (DGP), the government issued an order to transfer the Highrich fraud case to the Central Bureau of Investigation (CBI). Currently, both the Enforcement Directorate (ED) and the Crime Branch are investigating the case. The financial investigation wing of the Crime Branch is leading the probe. Initial findings suggest a total fraud of Rs 750 crores, with the number of cases increasing daily. Given the gravity of the situation, the recommendation was made to involve the central agency. Consequently, the Home Department issued an order directing the DGP to promptly hand over the pro forma report to the Central Government.