Mumbai: Amber Dalal confesses mistakes to EOW amid investor fraud allegations

Amber Dalal the Chartered Accountant accused of duping thousands of investors of multiple crores admitted to his mistakes to the EOW officials while being questioned lsquoGalti hogayi Sahabrsquo were the lines of Dalal the proprietor of Ms Ritz ConsultancyAlthough a confession is not admissible in court it aids investigation EOW officials will corroborate Dalals statement with forensic audits crucial for tracing the money trailMeanwhile Dalal was taken to the JJ hospital on Saturday April 6 morning after he complained of chest pain and uneasiness Dalal was sent to judicial custody for fifteen days by the special MPIDA Court on April 8 confirmed his advocateldquoI will approach the court for getting angiography done at a private hospitalrdquo was the response of Dalal to the doctors at JJ hospital when they advised an angiography said the policePromptly paid returnsldquoIn his submission Dalal informed the investigators that he was prompt in paying the returns to his investors and that he had no intention ever to dupe any of his investors some of them being associated with him for over a decaderdquo said senior EOW officialThe official added ldquoEven the clients of Dalal have acknowledged that he was prompt in paying their returns but it was only in the last few months that he delayed his payment This was the first time March 2024 that he failed to keep his wordrdquoPostCOVID downfallldquoDalal claims that after the COVID19 outbreak and subsequent lockdown in 2020 which negatively impacted the trading market he faced challenges He alleged that he managed to pay returns to investors from his profits from 2021 to 2023 However by late 2023 he began using new investments to pay clients instead of trading leading to difficulties in meeting fund flowrdquo said the EOW officialOn investigationldquoWeve seized assets and frozen 20 out of over 30 bank accounts belonging to Dalal Additionally his laptops mobiles and other digital equipment have been confiscated for data extraction by our expertsrdquo said Jt CP EOW Nishit MishraMishra expressed his dismay over the delay in getting bank details which is crucial for the forensic auditors to begin their analysis of the money trailldquoWe held Dalal for 14 days and hes now in judicial custody However despite our prior requests we havent received the complete bank statements These statements are crucial for forensic investigators to trace the money trail and identify beneficiaries Delays strain our team as we rely heavily on auditors findings to file the charge sheet within a set timeframerdquo Mishra saidIs it a Ponzi schemeOn asking the officer if Amber Dalals case can be tagged as a lsquoPonzirsquo scheme Mishra said ldquoIn India the term Ponzi scheme isnt legally defined Complaints of fraud involving promises of high returns or money circulation schemes are typically directed to the EOW The investigation into Amber Dalals firm Ms Ritz Consultancy and other entities requires a forensic audit to understand the money trail and determine the nature of the whitecollar crime Preliminary inquiries suggest Dalal was trading with brokers but further investigation is needed to uncover whether his financial crisis stemmed from trading losses poor investments or misappropriation of funds which will be clarified by the forensic audit reportDistribution of moneyWhen informed that senior citizens and single parents who were solely dependent on the returns from Dalal were left in the lurch the official said ldquoIt is unfortunate that many innocents became victims of one manrsquos wrongdoing We follow MPID court orders for disbursement Investors whove received a principal amount wont get monthly payouts Those with unpaid principals get the remaining amounts Reinvestment plan investors only get the principal amountThe mathsThe investor simplified the above statement with an example Person A who invested 10 lakh in 2018 and received 25 lakhs annually wont be eligible for further payments as theyve already received their principal Person B investing 10 lakh in 2020 and receiving 75 lakh would get the remaining outstanding principal of 25 lakh Person C investing 10 lakh in 2011 with a reinvestment plan now totalling 30 lakh would receive only their initial 10 lakh investment excluding reinvestment gainsOther sideldquoMy client complained of chest pain and was taken to JJ hospital on Saturday morning I have been allowed by the court to meet him without police presence and since it is a privilege communication between an advocate and client I cannot disclose anything furtherrdquo said Advocate Benny JosephScam victims create support groupFrom aiding ongoing police investigations to following up on court hearings numerous investors defrauded by Amber Dalal in the commodity trading investment scam are now offering support to fellow investors Theyrsquove formed a support network assisting with job searches providing counselling and offering coaching Citybased psychiatrists believe that if successful this investor group will offer solace comfort and confidence to those in needInvestors defrauded by Amber Dalal are now offering support to fellow investorsRamon Magsaysay awardwinning psychiatrist Dr Bahart Vatwani said ldquoShared loss and grief often lead to collective healing efforts within human groups Knowing others face similar struggles which eases individual pain and fosters empathy These shared healing endeavours offer emotional closure and catharsis for all involved resembling how displaced refugee groups support each other despite being strangersrdquoldquoItrsquos uplifting that the victims formed a support group showcasing human altruism Itrsquos a challenging but promising start offering solace comfort and confidence to rebuild lives This fresh initiative breathes hope into familiesrdquo said psychiatrist Dr Harish ShettyldquoIn a world consumed by angst and primitive instincts isolated individuals particularly the elderly often succumb to anxiety and insecurity leading to emotional blindness This can result in irrational investments driven by greed causing the rational mind to falter To avoid this itrsquos crucial to engage in rational reflection and seek guidance from experts Involving family members for additional support and due diligence is also advisablerdquo added Dr Harish ShettyThe Whatsapp messageAn investor who did not wish to be identified shared an appeal message which read ldquoUnfortunately a lot of our fellow investors are left in deep misery and anguish due to the fraud caused by Amber Dalal This sudden misfortune has many of them battling to make ends meet Some of the investors would need to restart their careers while others are struggling to pay not only the lawyerrsquos fees but also pay fees of their children as the new academic year beginsrdquoDonrsquot ignore signs of guiltldquoGuilt is often a result of conflicting actions and beliefs leading to emotional distress Many may feel selfguilt blaming themselves for financial losses incurred by family or friends in investments they recommended This can lead to anxiety depression and even suicidal thoughts requiring professional interventionrdquo explained Professor Dr P Madhava Soma Sundaram former President the Indian Society of CriminologyAlways seek helpldquoIn such a situation victims facing sudden loss of income and legal battles must adapt to new circumstances which can be challenging Seniors single mothers and others struggling should seek assistancerdquo Sundaram addedHelplinesVandrevala Foundation9999666555Helpline KIRAN18005990019National Tele Mental Health Helpline14416 or 18008914416 247Aasra ndash 9820466726Samaritans 84229845282930 5 pm to 9 pmBMC MPOWER1800 120 820050 247ICALL ndash 9152987821 10 am 8 pm Mon to Sat