Mumbai: The Enforcement Directorate (ED) has unearthed the alleged laundering of at least Rs 1,000 crore by a syndicate with links to criminal gangs. Indications are that the final amount laundered may be much more. However, the basis question as to what is the source of these huge finds is still be answered identified a sprawling network of 250 shell and benami firms across 21 states linked to the Malegaon money laundering case. Investigations reveal that, in the initial phase, 201 dummy companies identified were used to park illicit funds, which were then layered through seven to eight stages and funneled via nearly a thousand shell entities. This intricate financial web facilitated the laundering of over Rs 1,000 crore into multiple accounts nationwide before the funds were siphoned off overseas, official sources said.
The ED’s probe reveals that, apart from the operation led by Mehmood Bhagat, also known as the ‘Challenger King,’ who is absconding, the alleged racket also Malegaon resident involved Siraj Mohammad in facilitating the money laundering. Several other criminal groups and syndicates were also linked with 201 dummy companies’ benami accounts. These syndicates form a complex network that spans various parts of the country and beyond, as identified by the agency.
As part of its probe, the ED has issued notices to various banks, requesting detailed Know Your Customer (KYC) information and transaction records related to these dubious accounts.
The investigation has so far traced the movement of Rs 1,000 crore through 14 banks, including Nashik Merchant Cooperative Bank, which was identified a few days ago. Of this amount, Rs 14 crore was reportedly withdrawn by the arrested accused, Siraj Mohammad, in Malegaon and transferred to Mumbai through a hawala operator. The remaining funds were rerouted to 21 other shell companies based in Navi Mumbai, Surat, Ahmedabad, Rajkot, and Chhattisgarh. These companies were established within a short time frame and were used to layer and further transfer illicit funds overseas.
In a recent search operation, the ED seized Rs 13 crore from hawala operators in Mumbai and Ahmedabad, linked to the laundering of the Rs 14 crore sent via hawala by the arrested accused, Siraj Mohammad, from Malegaon. The operators’ security is also under investigation, and the case is ongoing.
During the investigation, the financial probe agency also identified several dummy companies registered in Dubai, which received Rs 600 crore as part of the Rs 1,000 crore. Officials suspect that other syndicates may also be involved in laundering large sums through remittances.
According to officials, the case involves more than Rs 1,000 crore, with the involvement of other syndicates currently under investigation. The Maharashtra government has transferred the investigation to the Maharashtra ATS due to suspicions of terror funding.
Privy to the investigation, officials suspect that the funds moved through these 250 primary bank accounts may be linked to a range of illegal activities, including Ponzi schemes, a betting app syndicate, cybercrime, and narcotics trade. The accounts appear to have been exclusively used to collect funds, which were subsequently transferred to other accounts opened by the arrested accused, Siraj Mohammad, and other unidentified individuals.
