A high-profile Indian fund manager has been arrested in connection with a sprawling financial fraud that allegedly siphoned off millions of dirhams through shell investments linked to a Dubai port terminal.
Authorities in Mumbai confirmed on Monday that Rajeev Menon, CEO of Marigold Capital Management, was taken into custody following a joint investigation involving India’s Enforcement Directorate (ED) and Dubai’s Financial Services Authority (DFSA). Menon is accused of orchestrating a cross-border investment scam that routed illicit funds through a complex network of offshore entities tied to logistics and warehousing contracts at Dubai’s Jebel Ali Port.
The scam, estimated to involve upwards of AED 70 million (approximately ₹160 crore), was uncovered after discrepancies were flagged in trade finance documents linked to container shipments and terminal leasing agreements in the UAE.
“Initial evidence suggests this was a carefully structured scheme using false invoices, dummy companies, and inflated asset valuations to divert investor money,” a senior ED official told The Economic Herald on condition of anonymity.
Marigold Capital attracted funds from high-net-worth individuals and institutional investors under the pretext of offering exclusive access to a “logistics growth fund” that promised high returns through partnerships with port operators in Dubai. However, investigations revealed that many of the claimed infrastructure projects were either non-existent or massively overstated in value.
Dubai authorities are now coordinating with Interpol and Indian investigators to trace assets and freeze accounts associated with Menon and his associates. The DFSA has also launched an independent audit of all fund flows related to the Jebel Ali contracts.
This case is being viewed as one of the most significant India-UAE financial crime collaborations in recent years, highlighting increased scrutiny of cross-border investment vehicles operating under the guise of private equity or logistics financing.
Menon is expected to appear before a special economic offenses court in Mumbai later this week. Legal experts say he could face charges under India’s Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA), with possible extradition-linked proceedings in the UAE if more suspects are identified.
