The Enforcement Directorate (ED) has carried out searches at premises of Samajwadi Party leader Dinesh Kumar Singh alias Dinesh Singh Gujjar in Noida in Bike Bot scam case, where the accused lured people to invest in an innovative scheme of bikes which were put on rent by Garvit Innovative Promoters Ltd (GIPL) on a promise of high return. ED said its investigation revealed that funds collected by the firm were rotated in a fashion akin to a ponzi scheme and were ultimately used in creation of assets in the name of the company and other persons.
ED said it has found incriminating documents against Dinesh Kumar Singh, State Secretary of Samajwadi party, UP, during searches and seized them in Bike Bot scam. He was arrested by the sleuths on July 21 and was granted five days custody by a Special court.
The ED began the probe on the basis of UP police FIRs registered on the basis of complaints made by the investors of Bike Bot fraud committed by Garvit Innovative Promoters Ltd. (GIPL), Sanjay Bhati and other persons, the agency said in a statement.
In 2017, ED probe revealed, accused Sanjay Bhati and others floated lucrative investment scheme in the name of BIKE BOT. “As per the scheme, a customer could invest in 1,3,5 or 7 bike(s) which would be maintained and operated by the company and the investors would be paid monthly rental, EMI and bonus (in case of investment in multiple bike),” said ED. Funds collected were rotated in a fashion akin to a ponzi scheme and were ultimately used in creation of assets in the name of the company and other persons, the agency pointed out.
Gujjar allegedly used his network to locate beneficiaries of the proceeds of crime generated through Bike Bot scam. By flouting his relations with the ED officials, he would put pressure or entice his victims to extract money which directly or indirectly was a part of the proceeds of crime, the ED charged.