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Money laundering: ED arrests two each in Gujarat and Maharashtra

Both the arrests by ED were made under the provisions of the Prevention of Money Laundering Act.

india Updated: Apr 21, 2017 01:47 IST
In the first case, the agency arrested a Surat-based man. In the second case, the ED arrested a Mumbai resident.
In the first case, the agency arrested a Surat-based man. In the second case, the ED arrested a Mumbai resident.(HT/ PHOTO)

The Enforcement Directorate (ED) has arrested two people, one each in Gujarat and Maharashtra, in connection with its separate money laundering probes.

In the first case, the agency arrested Surat-based RC Baid for his role in “aiding and laundering of tainted money in the Bank of Maharashtra loan fraud case” to the tune of Rs 836.29 crore.

Baid, it said, is the promoter and director of a firm called Ms Sidhhi Vinayak Logistic Limited.

“The investigations revealed that the loan amount of Rs 836.29 crore was disbursed for the purchase of vehicles to various companies on the directions of Baid to the bank authorities for a scheme called ‘Chalak se Malak’ (driver to owner) for drivers by Baid.

“After disbursement of the loan to these companies, the loan money was circulated through chain of group associate companies through a series of unsecured loan and fraudulent transactions,” the agency said in a statement.

Baid, they said, is the “mastermind” behind the criminal act of money laundering by embezzlement of bank loans which was obtained using forged documents.

“He (Baid) had made his wife, sons, daughter-in-laws, employees as directors in several companies through which money was layered,” it said.

In the second case, the agency arrested Anil Chokhara in Mumbai for allegedly laundering funds and submitting forged bills to transfer Rs 304 crore funds through banking channels to Hong Kong and UAE.

“Chokhara, in his capacity as one of the Directors of Ms Kanika Gems Private Limited has indulged in submitting forged import documents including bills of entry and invoices to IndusInd Bank with the intent to fraudulently remit foreign exchange.

“Multiple duplicates of each Bill Of Entry were made and submitted to different banks to show legitimate imports,” the agency said.

“Investigation, so far, has revealed that from Ms Kanika Gems alone, an amount of about Rs 240 crore has been remitted on forged bills of entry to the overseas accounts in Hong Kong and UAE,” it said.

Both the arrests were made under the provisions of the Prevention of Money Laundering Act (PMLA).