State govt hands over Highrich fraud case to CBI; Action on recommendation of DGP

KOCHI: The state government has issued an order transferring the Highrich financial fraud case to the CBI. This decision comes amidst ongoing proceedings to seize immovable property under the BUDS Act registered in the name of Highrich online shoppers.

The recommendation to transfer the case to the CBI was made by the DGP. Currently, the Financial Investigation Unit of the Crime Branch is conducting the initial investigation. The DGP emphasized the preference for a central agency investigation over a crime branch inquiry.

According to the government order, the case is deemed serious and warrants investigation by a central agency. The Home Department estimates the fraud amount to be Rs 750 crore. The state police chief had urged the government to assign the case to the CBI, leading to the issuance of the order.

The case involves allegations against Prathapan and his wife regarding a multilevel marketing scheme, wherein Rs 1157 crore was misappropriated. The Enforcement Directorate (ED) investigation revealed that Rs 1138 crore was collected from investors through the launch of a coin called HR Coin. ED has labelled Highrich as one of the largest black money transactions in recent times.

ED's affidavit against the anticipatory bail application mentions 19 cases filed against the accused across various police stations. The misappropriated amount, totalling Rs 1157 crore, was spread across five companies. The couple allegedly amassed crores of black money through crypto transactions, with Rs 212 crore held in 50 bank accounts under the names of five companies. These accounts have been frozen by the ED.

There are suspicions that the collected funds were illicitly transferred abroad. Prathapan and his wife Sreena, reportedly engaged with investors through Highrich coupons.