ED takes over Rs 2,438 crore Aarudhra Gold ponzi scam in TN; political links uncovered

In a major development in Tamil Nadu's most notorious financial heist, the Enforcement Directorate (ED) has formally taken over the investigation into the Aarudhra Gold Trading Private Limited scam.

The case was earlier investigated by the Economic Offences Wing (EOW) of the Tamil Nadu CID.

The central investigating agency invoked the Prevention of Money Laundering Act (PMLA) to trace the laundering of over ₹2,438 crore allegedly siphoned from more than one lakh depositors through a web of shell companies, hawala routes, and overseas assets.

ED raided multiple locations in Chennai, including several private apartments located at Mogappair, Madipakkam and Ice house area, reportedly linked to the brokers involved in this scam.

Classic Ponzi scheme

The EOW's exhaustive inquiry began with a landmark FIR on May 20, 2022, registering cases against the Aarudhra Gold company and its directors, including over 20 key accused, for cheating around one lakh investors by promising exorbitant interest rates of 25-30 per cent monthly, 5 per cent referral commissions, and gold coin gifts only to collect a total of ₹2,438 crore in deposits from September 2020 to May 2022, before abruptly vanishing.

This exposed how the Chennai-based non-banking financial firm, masquerading as a gold trading entity, operated a classic Ponzi scheme from its Aminjikarai office.

Cases registered

EOW filed 19 FIRs by mid-2022 and cases were registered under IPC Sections 420 (cheating) and 406 (criminal breach of trust), alongside the Banning of Unregulated Deposit Schemes (BUDS) Act, 2019, and the Tamil Nadu Protection of Interests of Depositors (TNPID) Act, 1997.

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The ED has formally registered an Enforcement Case Information Report (ECIR) and launched a parallel money-laundering investigation into the Aarudhra Gold scam, directly triggered by the EOW’s findings of large-scale laundering.

The central agency is now probing the trail of the ₹2,438-crore fraud, focussing on the ₹800 crore worth of assets already attached by the EOW, which includes luxury properties in Dubai, a fleet of high-end imported cars, benami bank accounts, and overseas hawala transactions while conducting simultaneous raids and financial forensics alongside the state police probe.

EOW's probe led to arrests by mid-2022, including key directors such as K Harish, a suspended BJP functionary nabbed in March 2023 and S Muthukumar, who evaded capture for 10 months before his airport arrest at Dubai. By March 2024, the tally reached 21 arrests, and the hunt for fugitives like the prime accused's wife, Usha Rajasekar is still on.

Political links

A shocking layer emerged in April 2023 when EOW uncovered political undercurrents, actor-producer RK Suresh, a BJP affiliate, was implicated for allegedly receiving ₹20 crore to "influence" the FIR and shield directors using central government ties.

Suresh, who fled to Dubai amid a look-out notice, was detained upon his December 2023 return and grilled over laundering investor funds into Kollywood productions and ₹15 crore was traced directly to his accounts.

A preliminary chargesheet filed in June 2023 formalised these links, with the Madras High Court upholding EOW summons despite Suresh's pleas.

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The scam's mastermind, managing director P Aarudhra Rajasekar (also known as V Rajasekar), fled India post-collapse and was detained by Interpol in Abu Dhabi in December 2023 after a Red Corner Notice.

EOW's extradition push, renewed via the ministry of external affairs in November 2024, remains mired in UAE diplomatic delays, now the second such request remains unanswered.