New Delhi: The federal anti-money laundering agency Enforcement Directorate (ED) has announced that it will auction a seized business jet linked to the massive fraud allegedly orchestrated by Falcon Group and its promoters. The Hawker 800A aircraft (registration number N935H) will be auctioned on December 9, 2025, with inspection available at Begumpet Airport, Hyderabad until December 7.

The jet had originally been acquired in 2024 for about USD 1.6 million (around ₹14 crore) by the company’s chairman Amardeep Kumar, through a charter firm. The ED seized it in March 2025 during raids at Rajiv Gandhi International Airport (RGIA), Shamshabad, as part of its investigation into a massive invoice-discounting investment scheme run by Falcon Group. The agency alleges the scheme defrauded investors of around ₹792 crore.

Since the purchase is alleged to be from proceeds of crime, the jet qualifies as an “attached asset” under the provisions of the Prevention of Money Laundering Act (PMLA). The adjudicating authority under PMLA confirmed the seizure, and granted permission for its sale under Rule 4(2) — a clause invoked when a seized item’s maintenance costs or the risk of depreciation make continued retention impractical. In its public notice, ED said proceeds from the auction will be used for restitution to victims of the scam.

What the Falcon scam case is about

The Falcon Group, operating under the name Capital Protection Force Pvt Ltd (CPF) among others, is accused of running a bogus “invoice discounting” investment scheme. Under this, investors were promised high returns for discounting invoices — but investigators found no genuine underlying business activity. Instead funds collected from investors were diverted to buy assets including the business jet, real-estate, corporate investments, share-holdings, and more.

According to the ED, the scheme collected roughly ₹792 crore (some reporting mentions up to ₹1,700 crore raised, with partial repayments leading to outstanding dues for thousands of investors). As of 2025, close to 6,979 investors remain unpaid. Investigations have led to arrests of a few individuals — including the accused’s brother, a chartered accountant, and the company’s COO — on charges of money laundering and fraud. But the main accused Amardeep Kumar is reported to be absconding. Among the assets ED provisionally attached in the case are properties worth tens of crores, other movable/immovable assets, and the aircraft now set for auction.

Why ED moved to auction the jet

Officials said the move to auction the jet was prompted by practical considerations. The aircraft has been lying idle at Begumpet Airport, incurring substantial hangar and maintenance costs. Under the PMLA rules, seized properties that are prone to deterioration or are expensive to maintain may be sold if a court — or adjudicating authority — grants permission. In this case, the adjudicating authority granted that permission in November 2025. Given how expensive aircraft maintenance, storage, and regulatory compliance are — especially for a mid-size business jet that may remain unused for long — sale was considered the most viable option. The ED’s decision to auction the jet reflects the agency’s attempt to convert illiquid seized assets into funds to help compensate defrauded investors.

What this auction could mean for defrauded investors

If the auction succeeds, the proceeds could provide some relief to victims who lost money in the Falcon invoice discounting scheme. The move to convert seized assets into restitution represents a step toward recovering at least part of the misused funds.

However, given the scale of the alleged fraud — hundreds of crores of rupees and thousands of affected investors — the sale of one aircraft will likely cover only a fraction of total losses. The ED has also attached other assets (properties, investments, etc.), but recovery and liquidation of those may take time. Meanwhile, the auction serves as a signal that authorities are actively pursuing the case, and may encourage further disclosures and attachment of additional assets linked to the fraud.

Broader significance: What raises concerns in corporate-fraud cases

The case underscores several broader issues that often surface in large-scale financial scams:

• Use of high-value assets for laundering money: According to the ED, proceeds of the alleged fraud were used not just to buy the jet, but also flow into investments, immovable property, business holdings, and even leisure spending — underlining how fraud proceeds often get disguised.
• Complex corporate structure and opacity: The accused used multiple entities, and even a bespoke investment app, to hide the true nature of operations. Such schemes make detection and prosecution difficult.
• Delay and scale in restitution: While arresting individuals and seizing assets is one step, returning value to victims — especially when many investors and large sums are involved — is a long and difficult process. The auction of a jet helps, but full restitution remains uncertain.Need for tight regulatory oversight: Cases like these prompt questions about how such schemes attract large numbers of investors. Oversight of investment schemes, financial products, and transparency norms becomes key.

What to watch next

• Whether the auction on December 9, 2025, yields substantial bids. The final sale price and payment completion will reveal how much can realistically go toward victim restitution.
• Whether ED or courts move to attach and liquidate other assets linked to the scheme — including properties, corporate holdings, or investments. That will influence how much of the defrauded funds investors might recover in total.
• Whether investigators manage to track down and extradite the main accused, currently absconding abroad — a key step in ensuring accountability and full resolution.
• Any legal proceedings in specialised PMLA courts, including prosecution complaints, trial hearings, and judgements.