New Delhi, Dec 2 (PTI) A seized business jet, purchased in 2024 for about Rs 14 crore, has been put up for auction by the Enforcement Directorate (ED) in Hyderabad as part of its effort to restore funds to the victims of a investors' "fraud".

The Hawker 800A aircraft, bearing registration number N935H, was seized by the federal probe agency in March during raids conducted at the Rajiv Gandhi International Airport (RGIA) in Telangana's capital city.

The searches were part of a probe against the Falcon Group (Capital Protection Force Private Limited), its chairman-cum-managing director (CMD) Amardeep Kumar and others for "defrauding" investors in a bogus invoice-discounting scheme involving an amount of Rs 792 crore.

The plane was purchased by Kumar in 2024 for USD 1.6 million, the ED said in a statement on Tuesday.

It said Kumar "fled" the country using the said aircraft and is currently "absconding". The plane was seized by the sleuths of the ED's Hyderabad zonal office after it came back and was parked at the RGIA.

The aircraft is currently parked at the Begumpet Airport in Hyderabad and is available for inspection till December 12, according to the agency. Its auction will be conducted by the Metal Scrap Trade Corporation Limited (MSTC) on December 9.

"The proceeds from the sale of the aircraft shall be eventually used for the purpose of restitution to the victims of the scam," the ED said.

The Adjudicating Authority established under the Prevention of Money Laundering Act (PMLA) confirmed the ED's provisional attachment order in August and the agency subsequently moved an application before the authority to take possession of the movable asset so that it can be sold.

The authority allowed the ED to auction the plane via an order issued on November 20.

A specific section in the PMLA provides for the sale of a confirmed attached property if it is subject to speedy and natural decay or if its maintenance costs are likely to exceed its value.

The ED case stems from an FIR filed in February by the Cyberabad Police which alleged that Kumar launched an invoice-discounting scheme under the name and style of "Falcon Invoice Discounting" and duped gullible investors of Rs 792 crore.

The agency arrested three people in the case -- Kumar's brother Sandeep Kumar, chartered accountant Sharad Chandra Toshniwal and Capital Protection Force COO Aryan Singh Chhabra. It also filed a chargesheet before a special court in Rangareddy in September. PTI NES RC

Seized business jet put up for auction to restore funds to investors defrauded in an invoice-discounting scheme. ED placed a seized Hawker 800A business jet on auction after the Adjudicating Authority under the Prevention of Money Laundering Act confirmed provisional attachment and authorised ED possession and sale. The aircraft, linked to an alleged invoice-discounting fraud, is being auctioned via a state auction platform to realise proceeds for restitution to defrauded investors where sale was permitted due to risks of decay or disproportionate maintenance costs.