Most of them, investigators say, are on an ‘alert list’ issued by the Reserve Bank of India in September, after it found them to be dealing in forex in violation of the Foreign Exchange Management Act.
Recently, Strategy India, which analyses and issues alerts on money circulation frauds that use multi-level marketing compensation plans to cheat, lodged a complaint with the Mumbai Police against IX Global and entities linked to it for allegedly being involved in a multi-level marketing Ponzi scheme.
Separately, the Kolkata Police arrested three people on a complaint filed by Canara Bank against IX Global.
According to Strategy India’s complaint, IX Global used its network of participants to collect money for TP Global FX and sell subscriptions for algo-trading bots operating in the forex accounts of the participants under the guise of online education.
Recently, IX Global launched “debt box licences” and offered 5-16% returns on investment per month to divert the assets from TP Global to IX Global, the complaint said. The firm uses cryptocurrency for transactions in debt box licences.
TP Global FX is on the alert list issued by the RBI.
An email sent to IX Global seeking comment remained unanswered at press time Sunday.
Recently the Enforcement Directorate had frozen ₹21.14 crore in the bank accounts of OctaFX and its related entities for alleged violation of forex rules. According to the agency, OctaFX collected funds from users and then channelised the money through dummy entities.
Indian laws allow only authorised dealer banks and firms having a forex trading licence to deal in foreign currencies.
Residents are permitted to trade currency futures contracts like dollar-rupee and euro-rupee on local stock exchanges. But an individual trader cannot trade directly in foreign currencies or even transfer funds abroad under RBI’s liberalised remittance scheme to trade in currencies in offshore financial markets.
In its complaint against IX Global, Canara Bank said that it had detected huge online transactions in two bank accounts in its Nardendrapur branch that were opened in the name of companies with fictitious documents, the police said. The probe found that more than ₹70 crore was traded in the name of TP Global FX, the police added.