The Enforcement Directorate has arrested a man for his alleged involvement in operating eight shell companies and cheating an Indian Bank branch in Chennai to the tune of Rs 78 crore using forged Bill of Entries without actually transacting any imports.
K Liakath Ali was arrested under the Prevention of Money Laundering Act (PMLA) for allegedly remitting foreign exchange through shell companies using fake documents.
He used eight shell companies and remitted $11,778,120 out of India, the ED alleged.
After receiving an alert from the Indian Bank branch, the Chennai customs launched a verification and found fabrication of bills of entry and requested an ED investigation. Subsequently, an FIR was registered by Chennai police and action under PMLA was initiated.
The ED alleged that Eliyas Peer Mohamed and Liakath Ali, brothers, were the masterminds of the scam in which they sued firms called Galaxy Impex, Green International, Snow City & Co. etc., by opening fictitious bank accounts with various banks.
The investigations detected the use of multiple PAN cards to open bank accounts.
The ED said incriminating documents were found during raids at the premises of the two brothers.
Barring one, 24 transactions of remittances were made using forged bills of entry, the investigating agency alleged.
Ali was arrested and produced before a magistrate, who remanded him in judicial custody for 14 days.