The Enforcement Directorate (ED), Mumbai has arrested a person in connection with a massive Rs 96.68 crore investment fraud case. The accused, Sudhanshu Dwivedi was arrested on June 2 under the Prevention of Money Laundering Act (PMLA), 2002, following an FIR registered by Mumbai Police.

Dwivedi was produced before a Special PMLA Court in Mumbai and was granted ED custody by the court till June 9.

According to ED, Dwivedi allegedly duped an investor by promising high returns on commodity investments. Initially, he delivered grains to build trust. However, investigators say he later stopped deliveries and siphoned off the investor’s money.

The probe revealed that funds were routed through entities linked to Dwivedi’s family in a bid to project the proceeds of crime as legitimate. “He created a faade using related companies to misappropriate the funds,” the agency said.

The case was originally registered under multiple sections of the Bharatiya Nyaya Sanhita, 2023, and the Arms Act, 1959. The allegations include criminal breach of trust, cheating, and possession of arms without a valid licence.

On May 27, ED officials conducted searches at various premises connected to Dwivedi, seizing several movable assets, documents, and digital devices. According to sources, these items are now key evidence in tracing the money trail.

ED officials are now focused on tracking further layers of money laundering through shell entities and family-controlled firms and further investigation is underway.