Speak Asia transferred $104 million USD out of India to Singapore, bypassing Indian authorities, after its bank accounts were initially frozen in late May. This move occurred despite ongoing investigations and a recent police report filed against the company for public complaints regarding its operations.
Indian authorities faced questions for their initial inaction regarding Speak Asia's business in the country. After the late May account freeze, Speak Asia launched a campaign. It claimed government and critics acted with malicious intent and conspiracy, rather than within Indian law.
Months of official silence followed, even after four government agencies announced investigations. Indian police finally filed a "First Information Report" (FIR) last week. This report acknowledged public complaints about Speak Asia and confirmed a police investigation was imminent.
Little public action has stemmed from the FIR. However, details emerged about the Criminal Investigation Department's (CID) earlier case against Speak Asia. CID moved to freeze the company's financial assets and bank accounts around May.
CID's application succeeded. Speak Asia then challenged this, asking for a restraining order to prevent CID from freezing its accounts. The court granted this order. CID's appeal against the decision failed, leaving them unable to act.
During this period, Speak Asia, operating through Haren Ventures and other associated companies, had access to its bank accounts. The company owed substantial money to nearly two million members. Instead of paying them, Speak Asia transferred 462 crore (INR 4620 million or $104 million USD) offshore to Singapore.
Yesterday, a high court judge dismissed the restraining order. CID can now refreeze Speak Asia's bank accounts. This hold will remain until CID's case concludes, preventing further offshore transfers to Singapore, where funds are beyond Indian authority. The whereabouts of the $104 million USD in Singapore remain undisclosed. Speak Asia's members, online shopping portal suppliers, and local Indian management have not received payments.