Mumbai: The Enforcement Directorate (ED) will soon interrogate sacked police official Sachin Vaze at the Taloja Jail in connection with the alleged corruption case lodged against former state Maharashtra home minister Anil Deshmukh.

A Special Court has granted permission to the ED to visit Vaze and record his statement in the jail.

It may be recalled that on May 19, Vaze had claimed to the ED that he had collected Rs 4.70 crore from bars in Mumbai between December 2020-February 2021 allegedly on Deshmukh`s orders.

Vaze said that he later handed over the amount to the ex-minister`s PA Kundan Shinde, who is now arrested in the same case, along with another PA Sanjeev Palande.

On its part, the ED said that Shinde has denied knowing Vaze and was not cooperating with the investigations, though both he and Palande were directly linked in the crime.

Deshmukh, who was forced to quit because of the allegations against him, has skipped three ED summons recently for questioning and has moved the Supreme Court seeking protection against any coercive action.

Vaze was arrested in connection with the sensational case of planting a SUV with 20 gelatin sticks and a threat note near the home of industrialist Mukesh Ambani and the subsequent death of the vehicle owner Mansukh Hiran.

Later, Vaze penned a note alleging Deshmukh had demanded Rs 2-crore to reinstate him in service and also set a target to collect Rs 100-crore per month from hoteliers and bars in Mumbai.

He also targeted Shiv Sena`s Transport Minister Anil Parab alleging that the latter had asked to collect money from contractors for him.

Both Deshmukh and Parab have stoutly denied the allegations and termed it as a strategy of the Opposition Bharatiya Janata Party to defame and malign the image of the Maha Vikas Aghadi government.

Enforcement Directorate

Enforcement Directorate summoned at least seven IPS officers of West Bengal for virtual interrogation. The IPS officers who have been issued a summon by the ED are senior officers in the rank of ADG, DIG and SP. Some of the officers were already interrogated by CBI in coal and cattle smuggling cases. 

New Delhi: The Enforcement Directorate (ED) on Tuesday (July 6, 2021) arrested Nationalist Congress Party (NCP) leader Eknath Khadse’s son-in-law Girish Chaudhary in a money laundering case. 

Chaudhary was held after being questioned by the law enforcement agency on Tuesday.

The money laundering case is linked to the alleged irregularities in the 2016 Pune land deal. In 2017, Maharashtra Anti-Corruption Bureau had registered a case against Eknath Khadse, his wife Mandakini, Girish Chaudhary and the landowner Abbas Aqani. 

It was alleged that he misused his official powers to facilitate the purchase of government land of the Maharashtra Industrial Development Corporation (MIDC) by his family in the Bhosari area of Pune.

Subsequently, the ED had also registered a case under the Prevention of Money Laundering Act, 2002 (PMLA) against Khadse and his family. The NCP leader was also questioned by ED in January this year. 

Khadse, 68, had left the Bharatiya Janata Party (BJP) in 2020 to join the NCP of former Maharashtra chief minister Sharad Pawar. He had resigned from the then Devendra Fadnavis-led Maharashtra cabinet in 2016 after facing allegations regarding the same land deal.

He, however, denied any wrongdoing, saying that the Maharashtra ACB, as well as the Income Tax department, had given him a clean chit in the matter. 

(With PTI inputs)

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New Delhi:  With the fraudulent loans on the radar of the Enforcement Directorate, Kewal Krishan Kumar, chairman and managing director (CMD) of Delhi-based Shakti Bhog Foods Ltd has been arrested in a case linked to an alleged multi-crore bank loan fraud.

Kumar was arrested on Sunday and later produced before a special Prevention of Money Laundering Act (PMLA) court that sent him to custody till July 9.

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In fact, before the arrest, at least nine premises in Delhi and Haryana were raided and various incriminating documents and digital evidences have been recovered, as per the investigating agency.

What case has been filed against Shakti Bhog Foods Ltd?

The ED case has been filed under criminal sections of the PMLA based on a CBI FIR. The FIR was filed early this year against Shakti Bhog Foods Ltd for an alleged fraud of Rs 3,269 crore on a consortium of 10 banks led by the State Bank of India (SBI).

While the CBI complaint was filed after the SBI registered a complaint against the company. According to the SBI, the directors allegedly falsified accounts and forged documents to siphon off public funds.

The 24-year-old company, which is mainly into manufacturing and selling wheat, flour, rice, biscuits, cookies etc., had grown organically and expanded into food-related diversification over a decade.  As per the PTI report, the company has reported a turnover growth of Rs 1,411 crore in 2008 to Rs 6,000 crore in 2014, according to the bank.

The ED said the “allegations against the accused include diversion of funds from loan accounts by round-tripping through related entities and siphoning of funds was being done by way of suspicious sale/purchase from various entities.”

 

New Delhi: The Enforcement Directorate (ED) on Saturday (July 3, 2021) conducted raids across six places in Delhi and Uttar Pradesh in connection with a forced religious conversion case.

The places searched included the office of Islamic Dawah Centre (IDC), the house of the main accused Mohd Umar Gautam and his associate Mufti Qazi Jahangir Qasmi, all located at Jamia Nagar in the national capital.

In UP, the ED raided offices of Al Hassan Education and Welfare Foundation and Guidance Education and Welfare Society located at Lucknow. These organisations, notably, are run by Umar Gautam. 

“These have been playing an instrumental role in carrying out illegal conversions,” the ED said in a statement.

“Several incriminating documents have been seized during searches which reveal the large-scale conversion carried out by accused Umar Gautam and his organisations all over India,” the ED added.

The law enforcement agency stated that the documents also reveal several crores of foreign funding received by the accused organisations for the purpose of illegal conversions.

This is to be noted that Umar Gautam and Jahangir have allegedly forced around 1,000 non-Muslims to convert to Islam.

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MUMBAI: Former Maharashtra Home Minister Anil Deshmukh will on Tuesday appear before Enforcement Directorate (ED) for questioning in connection with an alleged money laundering case. 

Deshmukh was earlier asked to depose before the investigating officer at the ED’s office on Saturday for questioning in the money laundering case related to an alleged multi-crore bribery-cum-extortion racket that led to his resignation from the post of state home minister in April this year.

 

Enforcement Directorate (ED) has summoned former Maharashtra Home Minister Anil Deshmukh for questioning today in connection with an alleged money laundering case. pic.twitter.com/7XUOOeVgDN

— ANI (@ANI) June 29, 2021

 

The NCP leader, however, had sought a fresh date for appearance before the ED, following which the agency asked him to appear for questioning this week.

The central agency on Saturday arrested Deshmukh’s personal secretary Sanjeev Palande (51) and personal assistant Kundan Shinde (45) after it carried out raids against them and the former home minister in Mumbai and Nagpur on Friday.

The ED’s case against Deshmukh and others was made out after the Central Bureau of Investigation (CBI) first carried out a preliminary inquiry followed by a regular case being filed on the orders of the Bombay High Court.

The court had asked the CBI to look into the allegations of bribery made against Deshmukh by former Mumbai Police commissioner Param Bir Singh.
Deshmukh, who resigned from his post in April following the allegations, has denied any wrongdoing. 

In a related development, a Nagpur-based lawyer had appeared before the Enforcement Directorate on Monday in connection with a money laundering case against Deshmukh.

The central agency had summoned advocate Tarun Parmar last week after he complained to the agency against Deshmukh and some other politicians, claiming that he knew how these people were involved in money laundering and had documents to prove it. 

Parmar reached the ED’s office in south Mumbai around 11 am on Monday carrying some documents against Deshmukh and others. 

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MUMBAI: The Enforcement Directorate on Friday conducted searches at the premises of former Maharashtra home minister Anil Deshmukh in Nagpur and Mumbai as part of its ongoing money laundering probe against him.

The Enforcement Directorate officials said that the raids are being carried out under provisions of the Prevention of Money Laundering Act (PMLA) and the locations include Anil Deshmukh’s residence in Nagpur.

While another team of ED conducted raids at Deshmukh’s residence in Mumbai’s Worli area.

 

Maharashtra: Enforcement Directorate (ED) raids former Maharashtra Home Minister Anil Deshmukh’s residence in Nagpur, in connection with an alleged money laundering case.

Visuals from outside his residence. pic.twitter.com/PD69rBSOsv

— ANI (@ANI) June 25, 2021

 

Anil Deshmukh had to resign in the wake of allegations of corruption levelled by former Mumbai Police chief Param Bir Singh. Singh is already facing a CBI enquiry into the allegations. According to Singh’s allegations, Deshmukh had fixed a Rs 100-crore collection target for then assistant police inspector Sachin Vaze.

The central probe agency had registered a criminal case under the anti-money laundering law against Deshmukh, 71, and others last month after studying a recent CBI FIR.

The ED case came about after the CBI first carried out a preliminary inquiry followed by filing a regular case on the orders of the Bombay High Court that asked it to look into the allegations of bribery made against Deshmukh by former Mumbai Police Commissioner Param Bir Singh. 

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New Delhi: The Enforcement Directorate (ED) on Wednesday transferred assets worth Rs 9,371 crore to several public sector banks that suffered losses in alleged frauds perpetrated by fugitive businessmen Nirav Modi, Mehul Choksi and Vijay Mallya. 

According to reports, the agency has claimed that 40 per cent of the money lost by banks in alleged Rs 22,000 crore frauds by the trio has been recovered so far. 

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Modi, his uncle Choksi and Mallya are currently being investigated by central investigative agencies such as the ED and the Central Bureau of Investigation (CBI) after they cheated banks and these frauds have been categorised as among the country’s “biggest criminal loan heist” till date.

Commenting on the development, Union Finance Minister Nirmala Sitharaman took to Twitter and said that Fugitives & economic offenders will be actively pursued. “Their properties attached & dues recovered,” she added.

In a official statement, the central agency said it has given its low-down on two cases – the estimated Rs 13,000 crore fraud allegedly carried out by diamond trader Nirav Modi, his uncle Mehul Choksi and others in the Brady House branch of PNB in Mumbai and the about Rs 9,000 crore Kingfisher Airlines fraud triggered by Mallya. 

All the three accused had fled overseas after they defrauded public sector banks by siphoning off the funds through their companies which resulted in total loss of over Rs 22,000 crore (Rs 22,585.83 crore in definite numbers) to a clutch of banks.

The ED is currently probing these cases under criminal sections of the Prevention of Money Laundering Act (PMLA) and went on to attach and seize total assets worth Rs 18,170.02 crore in these two cases that included Rs 969 crore worth of properties ‘located’ abroad.

“The quantum of the attached and seized assets represent 80.45 per cent of the total bank loss of Rs 22,585.83 crore,” the ED said.

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The agency also informed that Debts Recovery Tribunal (DRT), on behalf of an SBI-led consortium that lent money to Mallya, sold fresh shares worth Rs 5,824.50 crore of United Breweries Limited (UBL).

Rs 1,060 crore worth of assets were ‘restituted’ to the banks earlier in the probe against Nirav Modi. 

The ED also got repatriated to the country assets like gold and diamond jewellery (of Modi and Choksi firms) from abroad to ensure they are not disposed off and are available to the banks and the government exchequer for seizure.

As on date, the ED said, assets worth Rs 9,041.5 crore, “representing 40 per cent of the total loss to the banks, have been handed over to public sector banks.”

New Delhi: In what could be termed as a major win for the investigative agencies, the Enforcement Directorate (ED) has transferred attached assets worth Rs 8441.5 crore to consortium of Public Sector Banks who had lent money to fugitive liquor baron Vijay Mallya, diamantaire Nirav Modi and his uncle Mehul Choksi.

Vijay Mallya, Nirav Modi and Mehul Choksi have defrauded the Indian PSBs to the tune of Rs. 22,585.83 crore.

Till date, the ED has attach/seizeed assets worth Rs. 18,170.02 crore which included assets worth of Rs. 969 crore located in foreign countries. The quantum of the attached and seized assets represents 80.45% of total bank loss of Rs. 22,585.83 crore. ED investigation has further found that substantial part of these assets were held in the names of dummy entities/ trusts/ third persons/ relatives of these accused and these entities were proxy of these accused to hold these assets. As on date, out of total attached/ seized assets of Rs. 18,170.02 crore under provisions of PMLA, assets worth of Rs 329.67 crore has been confiscated and assets worth Rs 9041.5 Crore, representing 40% of total loss to the bank have been handed over to the Public Sector banks.

Recently, the ED has transferred shares attached by it (worth of Rs. 6,600 crore approx.) to SBI led consortium as per order of PMLA Special Court, Mumbai. The debts recovery tribunal (DRT) has sold shares worth over Rs 5,800 crore of United Breweries Limited (UBL) that were earlier attached under the anti-money laundering law as part of an alleged bank fraud probe against fugitive liquor baron Vijay Mallya, the Enforcement Directorate said on Wednesday.

Further realisation of Rs 800 crore by sale of shares is expected by June 25, the central probe agency said in a statement. Recently, it said, the agency had transferred shares attached by it (worth about Rs 6,600 crore) to the SBI-led consortium as per order of the special Prevention of Money Laundering Act (PMLA) Mumbai.

Mallya, 65, has lost the case against his extradition to India and he has “been denied permission to file appeal in the UK Supreme Court.”

In May, Prime Minister Narendra Modi discussed extradition of Vijay Mallya and Nirav Modi with United Kindom. The issue of extradition of Vijay Mallya and Nirav Modi figured in a virtual summit between India and the UK, with Prime Minister Narendra Modi asserting that economic offenders should be sent back to the country at the earliest for trial. India has been pressing the United Kingdom to extradite Mallya and Modi to face trial in India for their alleged involvement in cases relating to financial fraud.

Meanwhile, Mehul Choksi, had mysteriously gone missing on May 23 from Antigua and Barbuda where he has been staying since 2018 as a citizen. The diamantaire was later detained in neighbouring island country of Dominica for illegal entry after a possible romantic escapade with his rumoured girlfriend. 

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The Enforcement Directorate (ED) has finally it has issued a show cause notice to Crypto-Currency Exchange Zanmai Labs Pvt Ltd (WazirX) and its Directors Nischal Shetty and Sameer Hanuman Mhatre for transactions involving crypto-currencies worth Rs 2,790.74 crore, officials said.

This investigation has been initiated by Foreign Exchange Management Act (FEMA) on the basis of the ongoing money laundering probe into Chinese-owned illegal online betting applications.

The official said that during the investigation, it was seen that the accused Chinese nationals had laundered proceeds of crime worth Rs 57 crore by converting the Indian rupees deposits into Crypto-currency Tether (USDT) and then transferring the same to Binance (exchange registered in Cayman Islands) Wallets based on instructions received from abroad.

He said that WazirX allows vide range of transactions with Crypto-currencies(CCs) including exchange of CCs with INR and vice-versa, exchange of CCs, person to person (P2P) transactions and even transfer/receipt of crypto-currency held in its pool accounts to wallets of other exchanges which could be held by foreigners in foreign locations.

The ED official claimed that WazirX does not collect the requisite documents in clear violation of the basic mandatory Anti Money Laundering (AML) and Combating of Financing of Terrorism (CFT) precaution norms and FEMA guidelines.

“In the period under investigation, users of WazirX via its pool account, have received incoming crypto-currency worth Rs 880 crore from Binance accounts and transferred out Crypto-Currency worth Rs 1,400 crore to Binance accounts,” he said.

He said that none of these transactions are available on the blockchain for any audit or investigation.

“It was found that the WazirX Clients could transfer `valuable` crypto-currencies to any person irrespective of its location and nationality without any proper documentation whatsoever, making it a safe haven for users looking for money laundering or other illegitimate activities,” he said.

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New Delhi: The famous cryptocurrency exchange WazirX, along with its directors Nischal Shetty and Sammer Hanuman Mhatre experienced a big blow on Friday in the form of a show cause notice by the Information Directorate (ED), under Foreign Exchange Management Act, 1999, (FEMA). The notice was issue regarding transactions involving cryptocurrency worth Rs 2,790.74 crore. 

The official twitter handle of ED on Friday confirmed, “ED has issued Show Cause Notice to WazirX Crypto-currency Exchange for contravention of FEMA, 1999 for transactions involving crypto-currencies worth Rs. 2790.74 Crore”.  

According to an ED statement, it initiated FEMA investigation based on the ongoing money-laundering investigation into Chinese-owned illegal online betting applications. 

WazirX is an India-based cryptocurrency exchange which allows its customers to trade in digital currencies. It allows a range of transactions with cryptocurrencies like exchange of cryptcurrencies with rupee and vice-versa, transfer/receipt of cryptocurrency held in its pool accounts to wallets of other exchanges which could be held by people living outside India in foreign locations. 

According to ED, it was in this period under investigation that, users of WazirX received cryptocurrency worth Rs 880 crore via its pool account from Binance accounts and transferred out cryptocurrency worth Rs 1,400 crore to Binance accounts. 

Binance account is an online exchange account where users can trade cryptocurrencies. They support many of the most traded cryptocurrencies and provide a crypto wallet for its traders, where they can store their electronic funds. 

The officials said that none of these transactions are available on the blockchain for any audit or investigation. “It was found that the WazirX Clients could transfer ‘valuable’ crypto-currencies to any person irrespective of its location and nationality without any proper documentation whatsoever, making it a safe haven for users looking for money laundering or other illegitimate activities,” added the officials.

Bengaluru: Enforcement Directorate (ED) has attached Rs 76.67 crore lying in various bank accounts and payment gateways pertaining to Chinese loan app companies and their Indian associates.

The provisional attachment order was issued under the Prevention of Money Laundering Act, 2002 (PMLA).

The agency initiated an investigation on the basis of various FIRs registered by CID, Bengaluru on the complaints received from various customers who had availed loan and faced harassment from the recovery agents of the money lending companies.

The amount attached by ED pertains to seven companies out of which three are Fintech companies namely Mad Elephant Network Technology Private Limited, Baryonyx Technology Private Limited and Cloud Atlas Future Technology Private Limited which are controlled by the Chinese nationals and three NBFCs registered with RBI namely X10 Financial Services Private Limited, Track Fin-ed Private Limited and JamnadasMorarjee Finance Private Limited.

The Fintech companies have an agreement with respective NBFCs for disbursement of loans through digital lending apps.

The amount attached by ED also includes the amount of fee charged by Razorpay Software Private Limited to the extent of Rs 86.44 lakhs for not conducting due diligence in case of one company enrolled with it for disbursement and collection of loans. 

Money laundering investigation by ED revealed that these Chinese loan apps offered loans to individuals and levied a usurious rate of interest and processing fees.

The loan apps through their recovery agents resorted to systematic abuse, harassment and threatening to the defaulters through the call centers for coercive recovery of the loans by obtaining sensitive data of the user stored on mobile such as contacts, photographs and using them to defame or blackmail to the borrower.

They even threatened the borrowers by sending fake legal notices to their relatives and family members.

The investigation further revealed these companies are not authorized under any law and the NBFCs knowingly let these fintech companies to use their names for the sake of getting commission. The same is also violation of the Fair Practices Code of RBI.

Also Read: ED files prosecution complaint against three persons in money laundering case in Goa

Goa: Enforcement Directorate (ED) has filed a prosecution complaint against three persons in connection with a money laundering case in Goa.

The agency filed the charges against Sunil Kumar, Ankit Kumar, Synthia Durbhatkar Jain and M/s Sanatan Financers & Real Estate Pvt. Ltd. before the Special Court (PMLA), Mapusa in the cheating case.

ED initiated an investigation on the basis of FIRs registered by Goa Police against M/s Sanatan Financers & Real Estates Pvt Ltd., Ankit Kumar and Sunil Kumar on the complaints lodged by many foreign nationals.

The investigation revealed that the duo had received money to the tune of Rs 7.73 crore from many foreign nationals through Foreign Direct Investment (FDI) route in the accounts of various shell companies formed by them.

Thereafter, the money was laundered through various shell companies and credited in the bank accounts of M/s Sanatan Financers & Real Estates Pvt Ltd. and used for the construction of flats and villas in their project named “Peace Valley” at Quepem, Goa.

Foreign nationals were induced to invest in shell companies formed by the accused for purchase of flats and villas in the project. However, the ownership of said flats and villas was never transferred to the buyers.

ED had provisionally attached a total 72 flats and villas situated at 172/1, Peace Valley, Goa and bank balances belonging to M/s Sanatan Financers & Real Estates Pvt. Ltd. found to be involved in money laundering.

Earlier, Ankit Kumar was arrested by ED in the case and searches were also conducted at the premises of M/s Sanatan Financers & Real Estates Pvt. Ltd.