Karnataka: ED files prosecution complaint against Jaa Lifestyle India, alleges Rs 4.29 crore fraud
Bengaluru, Oct 14 (IANS) The Directorate of Enforcement’s (ED) Bengaluru Zonal Office has filed a prosecution complaint (charge sheet) before a special court here under the Prevention of Money Laundering Act (PMLA) against three accused persons/entities, including Jaa Lifestyle India Pvt Ltd and its directors, in connection with an alleged fraud involving a membership-based earning programme, an agency statement said on Wednesday.
According to the statement, the prosecution complaint was filed on October 7, following an investigation into the company’s alleged collection of funds from the public by promising earnings through its digital marketing and advertisement-viewing programme.
The ED investigation revealed that Jaa Lifestyle India Pvt Ltd allegedly adopted a structured membership-based model to enrol members and collect money. Prospective members were approached through WhatsApp and other online communication channels and informed about the company’s digital marketing and advertisement-viewing programme.
Interested individuals were provided with a link to register free of cost on the company’s web platform, where they were required to create login credentials. Subsequently, they were asked to pay Rs 1,109, inclusive of Goods and Services Tax (GST), into the company’s bank account to access the earning programme.
The company allegedly collected Rs 4.29 crore from the public between December 6, 2020, and June 4, 2021, the statement said.
Further investigation revealed that the company did not provide the promised facility to earn money by viewing advertisements. Instead, the funds collected from members were allegedly used for the personal expenses and benefits of the company’s directors, the ED said.
Earlier, as part of the investigation, the ED issued a Provisional Attachment Order (PAO) on July 22, attaching bank accounts held by Jaa Lifestyle India Pvt Ltd.
The special court for PMLA cases, Bengaluru, will now undertake further legal proceedings in the case.
–IANS
mka/vd
