The Enforcement Directorate has arrested two men in Chennai in connection with an alleged Rs 1,417.86-crore investment fraud run through Unique Exports and associated firms.

S. Naveen Kumar and S. Muthuselvam were arrested on September 29 under the Prevention of Money Laundering Act and remanded to 15 days of judicial custody.

The ED said the accused ran investment schemes under Unique Exports, East Valley Agro Farms and related entities, promising high returns from agricultural exports. Investigators found the firms did no substantial exports but kept collecting money.

About 35,759 investors contributed around Rs 1,417.86 crore, the agency said. Nearly Rs 719 crore was deposited in bank accounts linked to the network, with funds routed through more than 100 accounts.

Banking analysis showed Rs 390.90 crore falsely recorded as salary payments even though the firm had only four employees. Another Rs 79.56 crore was booked as commodity purchases without actual trade, allegedly to mask investor funds as business expenses.

Muthuselvam allegedly invested Rs 42.10 lakh but received Rs 12.72 crore in returns, commissions and referral benefits. The ED had searched nine linked premises in June. The probe began from an FIR by the Erode District Crime Branch.