VIJAYAWADA: The Directorate of Enforcement (ED), Visakhapatnam Sub-Zonal Office, has unearthed an alleged Rs 1,500-crore money laundering network involving the illegal transfer of funds abroad through shell companies and forged documents in the guise of payments for software imports.
The agency conducted searches at seven premises in Delhi and Kolkata under the Prevention of Money Laundering Act (PMLA), 2002, and seized unaccounted cash worth Rs 47 lakh and USD 5,900, AED 2,200 and RMB/CNY 5,600 and important documents.
The investigation was initiated based on an FIR registered by MVP Police Station in Visakhapatnam under various sections of the IPC, following a complaint by the Income Tax Department against Vaddi Mahesh and others.
They were accused of conspiring to create forged documents and using them to facilitate outward remittances through various banks.
According to the ED investigation, Vaddi Mahesh, along with his father and others, floated several companies with registered offices in Kolkata and opened bank accounts in their names.
Through these accounts, Rs 569.03 crore was transferred to five companies in Singapore, Hong Kong and China, ostensibly to purchase customised software. However, the invoices submitted to banks were fabricated, and no software was actually imported against the remittances.
Further investigation revealed that Bhimendra Kumar Goyal, who had allegedly smuggled cosmetics, electronic goods and textile fabrics into India by evading customs duty, approached Vaddi Mahesh through his associates to facilitate payments to overseas suppliers and launder the proceeds of crime. Goyal had been detained thrice under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA).
During 2014-17, Vaddi Mahesh allegedly received funds in the accounts of shell companies and remitted them abroad on Goyal’s instructions. The money was routed through dormant companies in Singapore and Hong Kong, held by nominee directors, before being transferred to accounts linked to Goyal and companies associated with his family members.
The ED also found that Goyal, in collusion with Pawan Kumar Ralli, allegedly operated fictitious firms in New Delhi under the names M/s Mehak Overseas, M/s Karan Overseas and M/s Geet Enterprises. Part of the proceeds was reportedly routed through M/s Village Handicraft Export and received by M/s Eagle Mount Trading Pte Ltd, Singapore, which was owned by Ashish Todi.
The proceeds of crime in the case have been prima facie estimated at around Rs 1,500 crore. Further investigation is on.