Enforcement Directorate i.e. ED has seized assets worth Rs 97.79 crore of businessman Raj Kundra. ED has taken this action under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The seized properties include a bungalow in Pune and several equity shares in the name of Raj Kundra. Apart from this, it also includes a flat in Juhu, which is in the name of Raj Kundra's wife and actress Shilpa Shetty.

‘Ponzi Scheme’ means investment fraud – ‘GainBitcoin Ponzi Scheme’. ED had started investigation on the basis of several FIRs lodged by Maharashtra Police and Delhi Police. This FIR was registered against Variable Tech Private Limited, late Amit Bhardwaj, Ajay Bhardwaj, Vivek Bhardwaj, Simpi Bhardwaj, Mahendra Bhardwaj and some agents.

It was alleged that these people had obtained bitcoins worth approximately Rs 6600 crore from investors in 2017 on the basis of false promises. People were promised returns of 10 percent every month. However, this business model failed and investors alleged fraud and misuse of their money through this 'Ponzi scheme'.

How did Raj Kundra's name come about?

ED investigation revealed that Raj Kundra had received 285 Bitcoins from Amit Bhardwaj, the mastermind of this ‘GainBitcoin Ponzi Scheme’. These bitcoins were found to be established in a bitcoin mining farm in Ukraine. It is alleged that but the deal was not completed and these bitcoins are still with Raj Kundra. Their current value is more than Rs 150 crore.

Earlier, several search operations were conducted in this case and three accused Nikhil Mahajan, Nitin Gaur and Simpi Bhardwaj have been arrested. All these accused are currently in judicial custody. The main accused Ajay Bhardwaj and Mahendra Bhardwaj are still absconding.