Accused in 125cr suspicious banking transactions remanded to ED custody

A PMLA court sent Akram Mohammad Shafi to ED custody for 7 days over a ₹125 crore money laundering case linked to shell companies.

MUMBAI: A special Prevention of Money Laundering Act (PMLA) court sent 33-year-old Gujarat resident, Akram Mohammad Shafi, who was arrested by the Enforcement Directorate (ED) on Wednesday in connection with a money-laundering probe of banking transactions worth ₹125 crore, to seven days ED custody.

Accused in 125cr suspicious banking transactions remanded to ED custody

ED’s investigation stems from a police probe against a Malegaon-based trader for suspicious transactions through misappropriation of bank accounts. A case was filed on November 7 against Siraj Hamed Memon who was operating a tea and cold drinks business, and his associates, on a complaint by an individual whose bank account was allegedly misused for unauthorised fund transfers.

As per the ED, the arrested accused, Shafi, was allegedly involved in assisting Siraj to open bank accounts which were used for transferring funds amounting to ₹125 crore to shell companies. He was detained from the Ahmedabad airport on Wednesday and has been sent to ED custody till November 29.

The case came to light after an FIR was registered at the Malegaon police station by a person whose documents were fraudulently used by Siraj and his aides to establish shell companies. Siraj allegedly opened bank accounts in the name of the shell companies at Nashik Merchant Co-operative (NAMCO) Bank in Malegaon.

According to ED, Siraj allegedly collected the documents from the victim on the pretext of providing financial benefit or job. The prosecution alleged that they analysed 14 accounts at NAMCO bank and discovered that more than ₹118crore were transferred from these accounts within two months to various entities.

The accused allegedly deceived victims by claiming he intended to establish a maize trading business at the Agricultural Produce Market Committee, Malegaon, and instructed them to open bank accounts purportedly for transferring money to farmers, promising them employment at the market committee.

The ED submitted that their investigation revealed that Memon had also opened three accounts with the Bank of Maharashtra in the name of Choice Marketing, Megha traders and Sunrise traders, to which around ₹41 crore were credited within two months, which were subsequently transferred to various other accounts.

Shafi, according to the ED, stayed with Memon at Malegaon for 14 days and helped him in arranging documents and opening bank accounts in the name of shell companies. A look out circular was subsequently issued against Shafi, who was detained from Ahmedabad airport while he was on his way to Dubai.

The special PMLA court, while allowing his custody to ED, observed that the prima facie investigation carried out by the agency shows that Shafi was the mastermind behind the opening of the 14 bank accounts along with Memon. “It goes to show that 14 accounts were created, and huge amount of cash was deposited,” said special sessions judge AC Daga, adding, “It is the accused who prima facie appears to have arranged for identities of persons in whose names the accounts were opened and has been involved in generating proceeds of crime.”