NEW DELHI: The Enforcement Directorate (ED) on Friday said it has arrested Surat-based financer Kishore Bhajiawala in a money laundering case relating to illegal conversion of scrapped currency notes.
Director of ED Karnal Singh in a tweet said, “ED arrests Jignesh Kishorebhai Bhajiawala of Surat under PMLA for converting old currency to new illegally.”
The ED had registered a case under Prevention of Money Laundering Act (PMLA) against Bhajiawala and his relatives after taking cognisance of a CBI FIR against him.
The CBI had registered a case after the Income Tax department first conducted searches and seized gold and cash from his premises in Surat in December. Bhajiawala is alleged to have laundered `1.2 crore by using fake IDs for opening bank accounts. He had converted the scrapped currency post-demonetisation by colluding with bank officials and private persons by indulging in impersonation, forgery and presenting forged documents as genuine.
“An amount of over `1.02 crore in new currency was seized by the I-T department from his premises during searches at his home, shop and bank lockers,” the ED has alleged in its case.