The directorate of enforcement (ED) has seized cash, foreign currency, gold and silver and frozen assets worth more than ₹30 crore in a money laundering investigation into the alleged SAGA group Ponzi scam involving Loni Urban Multi-State Credit & Thrift Co-operative Society (LUCC) and other affiliated co-operative societies.
ED's headquarters unit in New Delhi conducted search operations from 13th August to 16 August 2026 at multiple residential and business premises linked to Sameer Agarwal and his associates in Mumbai and Bhopal under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
During the searches, the agency seized large amount of incriminating documents and froze proceeds of crime comprising more than ₹30 crore worth of listed shares and securities, mutual funds, LIC policies and bank balances, besides nine high-end vehicles.
The agency also seized ₹1.53 crore in cash, foreign currency worth about ₹35 lakh, and gold jewellery and silver bullion valued at ₹5.25 crore,
according to a release from ED.
₹10,000 Crore Allegedly Collected from Public
ED investigation was initiated following multiple first information reports (FIRs) registered by police authorities in Uttar Pradesh, Madhya Pradesh and other states against LUCC and affiliated group cooperative societies.
According to the agency, the SAGA group had since 2009 allegedly induced members of the public to invest in recurring deposits, fixed deposits and monthly income schemes.
Investors were allegedly promised high assured returns, with their investments purportedly doubling or tripling within three to five years. The group also allegedly offered incentives such as cars to attract investors.
ED alleged that there was no genuine underlying business activity capable of generating the promised returns.
Using what the agency described as fake banking infrastructure and unrealistic return promises, the SAGA group allegedly collected more than ₹10,000 crore from the public.
Funds Allegedly Siphoned off by Promoters
The agency said investors were initially given certain payouts, but a substantial portion of the funds was allegedly siphoned off by Mr Agarwal and his associates.
According to ED, the diverted funds were used for personal aggrandisement and to pay market commissions to agents and associates.
The agency said the scheme relied heavily on cash collections. Funds collected from investors were allegedly routed through regional cash chests before being diverted by the promoters towards the acquisition of movable and immovable assets in India and abroad.
ED also alleged that shell companies and hawala channels were used to move and layer the funds.
Network of More Than 50 Shell Entities
The searches have reportedly uncovered an elaborate network of more than 50 shell entities allegedly controlled by operators identified by ED.
The agency said these entities were part of the mechanism through which the proceeds of crime were allegedly routed and invested in assets.
The investigation is examining the movement of funds through these entities and the alleged acquisition of assets in India and overseas.
Mr Agarwal, described by ED as the chairman and managing director (CMD) and principal controller of the SAGA group, has left India and is currently absconding, according to the agency.
ED said it had previously provisionally attached assets in the case through two separate provisional attachment orders.
The agency also arrested Ravi Shankar Tiwari, described as a key functionary of the group, on 14 July 2026, under the PMLA.
A prosecution complaint was subsequently filed before the special court on 24 July 2026.
The latest searches are part of the agency's continuing investigation into the alleged Ponzi scheme and the laundering and concealment of its proceeds.
Further investigation is underway, ED said.
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