Highrich Online Shoppe: Troubles Mount For Owners KD Prathapan, Sreena Prathapan
Troubles for Highrich Online Shoppe Private Limited is increasing day by day. This whole week has been completely troubling for its owners KD Prathapan and Sreena Prathapan. First, the chief executive officer Sreena Prathapan and Managing Director Prathapan evaded arrest and flee from the area as the Enforcement Directorate (ED) was carrying out a raid at the “Highrich Online Shoppe” office at Thrissur after they were found guilty by the agency of them engaging in frauds amounting to Rs 1,630 crores and of evading taxes to the range of Rs 126 crores. Then today, the Directorate has taken action against Highrich Online Shoppe Private Limited and its owners by freezing 55 bank accounts containing Rs 212 crore. Prashant Kumar, Deputy Director of ED”s Kochi Zone, told the media that the central agency, investigating potential money laundering, discovered the account details during searches at the couple”s residence in Cherpu and Highrich offices in Thrissur district on Tuesday and Wednesday this week.
The couple who claims support of crores of Highrich members and customers associated with its online shopping and super market chains across Kerala and outside, had approached a special court seeking bail, however, did not find a relief today. The court hearing the anticipatory bail plea, adjourned the case to January 30 and sought report from ED on the investigation it has been undertaking.
Sreena Prathapan and Prathapan, are facing allegations of operating pyramid schemes that amassed crores of rupees from the public under the guise of an online grocery retail store, promising high returns on deposits.
The Cherpu Police in Thrissur had filed a case against the couple and Highrich directors under the Banning of Unregulated Deposit Scheme (BUDS) Act, claiming that the initial investigation indicated a fund collection of Rs 1,630 crore. The Thrissur Collector issued an order to provisionally attach Highrich”s movable and immovable assets under the BUDS Act.
Cherpu Police investigators found that the funds, promised with a 40% return, were deposited in 20 accounts across four private banks. They also revealed that Highrich owned approximately 70 shell companies, with 14 located in Thrissur.
On January 23, an ED team arrived in Cherpu to search the Prathapans” residence, but the couple fled in a chauffeur-driven car just before their arrival. Though the ED team attempted to pursue the car, they eventually informed the police.
The Prathapans sought anticipatory bail in the Special Court hearing cases registered under the Prevention of Money Laundering Act. The hearing, initially scheduled for January 25, was rescheduled to January 30 after the judge requested a report.
In November 2023, the Kerala GST intelligence wing raided Highrich Online Shoppe”s office in Thrissur, discovering a suppressed turnover of Rs 703 crore and a calculated tax liability of Rs 126.54 crore. Prathapan was arrested by the intelligence wing and remanded in judicial custody by the Ernakulam Additional Chief Judicial Magistrate (Economic Office) Court.
