Ahmedabad: The Ahmedabad Zonal Unit of the Enforcement Directorate (ED) has lodged a complaint with the special court overseeing Prevention of Money Laundering Act (PMLA) cases. This complaint targets Neeraj Kumarpal Shah, the owner of a city-based defense sector startup, and other individuals.

The court acknowledged the Prosecution Complaint (PC) against Shah, of C2R Projects LLP, on September 25, the same day it was filed by the ED. The investigation by the ED was initiated following an FIR registered by Vadaj police under various sections of the Indian Penal Code (IPC) against Shah and others.

In a statement on Tuesday, the ED disclosed that Shah and his accomplices falsely claimed their company, C2R Projects LLP, was valued at around Rs 220 crore to deceive an investor, a retired Indian Army officer. This officer invested approximately Rs 45 crore to enter India’s defense sector, trusting Shah’s claim of having strong connections. However, Shah misappropriated at least Rs 22 crore for personal use and the benefit of relatives and accomplices.

Following a detailed investigation, properties worth Rs 15.59 crore belonging to the accused were attached. Requests to confiscate these properties are pending before the Principal District and Sessions Judge, Ahmedabad (Rural), and the PMLA Special Court.