On 20 August 2025, the Enforcement Directorate (ED) of India’s Hyderabad unit arrested Sharad Chandra Toshniwal, a Chartered Accountant, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The arrest is connected to the ongoing probe involving Capital Protection Force Pvt. Ltd., its promoter Amardeep Kumar, and others, relating to the fraudulent “Falcon invoice discounting scheme.” Following his arrest, Toshniwal was produced before the Special PMLA Court, which remanded him to 14 days of judicial custody.
Allegations & Investigation Details
The Fraud Scheme
- The ED’s investigation—initiated based on three FIRs filed by the Cyberabad Economic Offences Wing (EOW)—found that Capital Protection Force Pvt. Ltd. had launched the so-called Falcon invoice discounting scheme, claiming to fund invoice discounting operations while offering attractive returns to investors.
- However, no actual invoice discounting business was conducted. Instead, the company allegedly defrauded investors of around ₹792 crore.
- Amardeep Kumar is identified as the mastermind behind the scam and had developed the Falcon invoice app to receive investor deposits.
Toshniwal’s Role
- Sharad Chandra Toshniwal was the statutory auditor of Capital Protection Force since its incorporation and was reportedly fully aware of the fraudulent transactions conducted under the guise of invoice discounting.
- He is accused of managing the finances of several entities tied to Amardeep Kumar and his family, including Rhett Healthcare Pvt. Ltd., Rhett Herbal Pvt. Ltd., RDP Workstations Pvt. Ltd., and Swastik Ghee Pvt. Ltd.
- In exchange for laundering proceeds of crime (POC), Toshniwal allegedly acquired shares in these entities in the names of his relatives and benami holders, and played an active role in money concealment.
- He is specifically blamed for arranging approximately ₹14.81 crore in cash in lieu of the transfer of POC, effectively aiding in its concealment.
Asset Attachments & Prior Arrests
- Prior to Toshniwal’s arrest, the ED had already attached movable and immovable assets worth ₹18.14 crore linked to the case and had arrested Sandeep Kumar—the brother of Amardeep Kumar.
Summary Table for Blog Readability
| Component | Details |
|---|---|
| Scheme Name | Falcon Invoice Discounting Scheme |
| Total Amount | ₹792 crore |
| Primary Accused | Amardeep Kumar (Mastermind); Falcon invoice app developer |
| Arrested Auditor | Sharad Chandra Toshniwal (Statutory Auditor since incorporation) |
| Allegations Against Toshniwal | Aware of fraud, handled POC laundering, arranged ₹14.81 crore in cash, acquired benami shares |
| Prior ED Actions | Attached assets worth ₹18.14 crore; Arrested Sandeep Kumar |
Conclusion & Continuing Investigation
- Judicial Custody: Toshniwal was remanded to 14 days of judicial custody by the Special PMLA Court.
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Ongoing Probe: The ED continues its investigation into fund diversion, layering mechanisms, and the identities of additional beneficiaries and accomplices.