ED arrests Hyderabad-based trader for diverting 250 kg gold
HYDERABAD: The Enforcement Directorate (ED), on Thursday arrested Preet Kumar Agarwal, a city-based gold trader under the provisions of the Prevention of Money Laundering Act, in connection with diversion of gold weighing around 250 kg meant for export, into the domestic market.
The arrest comes after the agency conducted searches at five different locations in Hyderabad, following investigations by the Directorate of Intelligence (DRI), Kolkata relating to the diversion of gold jewellery meant for export.
During the searches conducted by ED, incriminating documents, valuables and records were recovered and seized, which also indicate large-scale hawala transactions being carried out by accused. It has also been found that the accused have acquired assets in the name of other people. Further investigation is in progress, a release from ED said.
The gold was procured duty-free by the accused from nominated agencies like Metals and Minerals Trading Corporation of India and Diamond India Ltd. It was being sold illegally to various persons in the domestic territory to evade Customs duty as well as to generate and launder huge proceeds of crime. Investigations by the DRI further revealed that gold weighing around 250 kg had been diverted by the accused in the domestic area. The DRI had earlier filed criminal complaints under Sections 132 and 135 of the Customs Act.
Accused also involved in hawala transactions
During its searches, the ED seized incriminating documents, valuables and records, which also indicate large-scale hawala transactions being carried out by the accused. The accused also seem to have acquired assets in the name of other people