NEW DELHI: The Enforcement Directorate has arrested two Delhi-based importers, both siblings, in the Birfa IT Case of money laundering which involved illegal foreign remittances of more than Rs 4,800 crore.
The accused Mayank Dang and Tushar Dang were arrested on November 25 under provisions of the Prevention of Money Laundering Act after which they were produced before a Special Court which remanded them to three days of ED custody. Earlier, Manideep Mago and Sanjay Sethi were arrested as part of this investigation.
The case involves illegal sending of Foreign Remittances worth Rs 4817 Crore against bogus and forged invoices for making compensatory payments for under invoiced imports made from China and Hong Kong.
According to the probe agency, their investigation revealed that the Dang Brothers had made a well organised syndicate comprising a big pool of Indian importers and traders, cash handlers, International Hawala Agents, local Angandiya firms, numerous Chinese manufacturers and suppliers and a dedicated chain of warehouses in several major Chinese cities.
Dang family also operate and control several foreign entities in collusion and collaboration with a key Chinese member of the syndicate who is known as Mr. King, who after procuring goods from numerous Chinese manufacturers and suppliers and accumulating the same in various Godowns and warehouses, export them to the firms controlled and owned by Dang family.
A senior officer said that the investigation revealed that the goods imported by Dang Brothers are highly under invoiced and the compensatory payments were remitted abroad through Manideep Mago and Sanjay Sethi. The remittances made by Manideep Mago and Sanjay Sethi were made against bogus invoices raised for online lease of servers for crypto mining, education softwares, lease of Bare Metal Servers etc.
However investigation revealed that no such services were actually provided and the remittances were made to foreign companies controlled by Manideep Mago and his accomplices, from where the payments were made to Chinese Companies engaged in export of various products to India.
"The probe revealed that the office of Dang brothers and the office or residences of their clients were a regular pick up point of cash by employees of accused Manideep Mago and Sanjay Sethi,"
This cash was layered through various bank accounts operated by the accused persons before being remitted abroad to make payments to Chinese exporters.
The probe also revealed that the Dang Brothers were destroying evidences by asking their employees and clients to destroy and change their digital devices post the start of ED investigation into the case.