Enforcement Directorate. File.
| Photo Credit: PTI
The Enforcement Directorate has facilitated restitution of assets worth ₹13.58 crore to the victims of money laundering and rightful claimants in the “fake imports” case involving “illegal” overseas remittance of about ₹3,200 crore.
The ED initiated its investigation based on a First Information Report filed by the Bank of Baroda against 59 current account holders of firms/companies and other unknown bank officials, alleging various offences under the erstwhile Indian Penal Code and the Prevention of Corruption Act.
“The ED probe revealed that huge amounts were remitted to various companies based in Hong Kong, SAR, China and Dubai, in connivance with several ‘hawala’ operators and businessmen in the guise of advance import remittances and remittances towards purported software imports,” said the agency.
“However, there was no subsequent imports and the accused submitted fake documents to the bank,” it said.
During the investigation, the ED issued seven provisional attachment orders involving assets worth ₹69 crore belonging to various accused persons and filed five prosecution complaints before a special court.
On March 8, considering the intent of the Prevention of Money Laundering Act to restore the proceeds of crime (POC) to bona fide claimants and victims of the offence of money laundering, the ED submitted no objection before an Additional Session Judge for the restitution of attached properties.
“Based on the afore-said submission of ED, the Additional Session Judge was pleased to pass an order to restitute the attached immovable properties…the restitution of properties to the rightful claimant and victim marks a significant step in the ED’s ongoing efforts to ensure that the POC are returned to those affected,” said the agency.
In this case, the agency had earlier arrested accused Kamal Kalra, Chandan Bhatia, Sanjay Aggarwal and exporter Gurucharan Singh. It was alleged that Mr. Kalra managed 12 of the bank accounts opened with the Ashok Vihar branch of Bank of Baroda.
The ED also found that “unscrupulous” exporters overvalue their goods and dispatch them to their contacts (middlemen) in the same country as that of the end buyer.
The contacts pass on the consignments to end buyers at genuine rates. However, based on inflated invoices, they pay back to the India-based exporters an extra sum, thus helping the exports claim more duty drawback.
As the entire modus operandi results in a deficit on the part of overseas middlemen, in order to offset the differential, the amount is deposited in the current accounts of shell entities and transferred to them on the pretext of advance remittances for purported imports.
Published – March 09, 2025 11:25 am IST
