January 23, Patna According to an official, Jawahar Lal Shah was detained by the Enforcement Directorate (ED), Patna Zonal Office, in accordance with the Prevention of Money Laundering Act (PMLA), 2002, in relation to a Ponzi scheme.

Shah was taken to judicial custody after being brought before the Patna Special PMLA Court, the official said on Wednesday.

An FIR filed by the Bihar Police against Jawahar Lal Shah, Mahua JLG Development Cooperative Society Ltd, and others under provisions of the IPC, 1860, served as the basis for the ED’s probe.

The ED investigation found that Shah and his associates conspired to create a number of companies and co-ops, including Mahua Joint Liability Group Development Cooperative Society Ltd, Mahua Joint Liability Group Dairy Products and Agro Industries Ltd, Mahua Gavy Prasankaran Swavlambi Sahkari Samiti Limited, and others. They collected between Rs 25 and Rs 100 crore from the public with the promise of paying higher returns.

The businesses and cooperative societies closed their doors and failed to provide the investors with the promised return when it matured.

A portion of the investor’s money was used to purchase real estate after it was stacked, laundered, and transferred to Jawahar Lal Shah’s and his affiliated individuals’ and organizations’ accounts.

On January 7, as part of the ED investigation, searches were carried out under section 17 of the PMLA at five locations in Bihar, West Bengal, Delhi, and Uttar Pradesh that were connected to Jawahar Lal Shah and other associates. As a result, incriminating documents, including digital devices, were recovered and seized.

The situation is being investigated further.