In a significant development, the Enforcement Directorate (ED) has taken decisive action against financial irregularities associated with M/s Hello Ride Ltd., attaching 28 immovable properties valued at Rs 2.38 Crore. The provisional attachment comes under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, and sheds light on the alleged misappropriation of funds by the company and its directors.
Background:
The ED initiated an investigation based on multiple FIRs registered in 2019 by the Uttar Pradesh Police against M/s Hello Ride Limited and its directors, namely Abhay Kumar Kushwaha, Nikhil Kushwaha, Mohd. Azam Ali, and Neelam Verma. The investigation aimed to uncover the intricacies of financial discrepancies linked to the operations of M/s Hello Ride Ltd.
Bike Taxi Scheme and Financial Malpractices:
The investigation by the ED uncovered a scheme launched by M/s Hello Ride Ltd under the banner “Hello Ride.” Similar to popular ride-sharing services like Ola and Uber, the company attracted investors by promising a monthly return of Rs. 9,585 for 12 months on an investment of Rs 61,000 per bike. This high Return on Investment allured investors, leading to the collection of deposits totaling Rs. 72 Crore from the general public.
However, M/s Hello Ride Ltd failed to fulfill its promise of monthly returns to investors, raising concerns about financial malpractices and deceptive business conduct.
Proceeds of Crime and Property Acquisition:
The ED investigation revealed a disturbing pattern where all the attached properties, in the form of agricultural land parcels located in Mohanlalganj, Lucknow, were acquired through the proceeds of the crime. These proceeds were derived from the deposits made by investors between 2018 and 2019.
Furthermore, the ED found that the funds received by M/s Hello Ride Ltd were swiftly siphoned off by the company’s directors into the accounts of associated companies and agents. This complex financial maneuvering was allegedly executed to acquire the immovable properties now provisionally attached by the ED.
The provisional attachment of 28 immovable properties valued at Rs 2.38 Crore marks a significant step in the ED’s efforts to unravel the financial irregularities surrounding M/s Hello Ride Ltd. The investigation underscores the importance of stringent measures to curb fraudulent financial activities and protect the interests of the general public. As the legal proceedings unfold, it will be crucial to ensure accountability and justice in this complex case of alleged money laundering and financial misconduct.
