ED arrests Viraj Patil in illegal forex trading case

The Enforcement Directorate has arrested Viraj Patil in Mumbai in connection with a money laundering probe against a firm involved in illegal forex trading. Patil is accused of staying in Dubai since 2021 and has allegedly been involved in promoting TP Global FX, a firm not registered with the Reserve Bank of India (RBI) for forex trading. The investigation has revealed that the accused used dummy companies to defraud the public and used illegally acquired funds for personal gains. The ED has frozen assets worth ₹121.23 crore in the case.

MUMBAI: The Enforcement Directorate (ED) on Monday arrested a key accused from the city in a money laundering probe against a firm allegedly involved in illegal forex trading. The arrested accused, Viraj Patil, has allegedly been staying in Dubai since 2021 and has a Resident Identity Card, ED sources said.

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As per the Reserve Bank of India (RBI), the firm, TP Global FX, is neither registered with them nor has any authorisation from it for conducting forex trading transactions. The RBI vided a press release on September 7, 2022, and issued an Alert List including the name of TP Global FX, which was published to caution the public against unauthorized trading platforms.

Patil was produced before a magistrate court in Kolkata, which granted his custody to ED till January 2, 2024.

The members/users of ‘IX Global’ had allegedly used the brokerage services of TP Global FX to conduct their forex trading, according to ED. ‘IX Global’ had allegedly obtained or derived the proceeds of crime in the case by promoting TP Global FX, ED sources said. “Viraj Suhas Patil is one of the key persons in IX Global,” an ED source said.

ED initiated the investigation based on the case registered by the Kolkata police against TM Traders and KK Traders.

The investigation revealed that Prasenjit Das, Shailesh Kumar Pandey, Tushar Patel, and other persons had allegedly used various dummy companies/firms/entities to defraud the public under the guise of making investments in forex trading by using the TP Global FX.

These illegally acquired funds were subsequently allegedly used to purchase movable/immovable properties for personal gains, according to the agency. The ED had earlier arrested Pandey and Das in the case, who are under judicial custody in the Alipore Jail, Kolkata.

So far, the ED has frozen ₹121.16 crore (the balance in various bank accounts under the probe scanner) and properties worth ₹121.23 crore in cash, gold, flats, hotels/resorts, and vehicles. ED earlier charge-sheeted Pandey and Das in the case under the provisions of the Prevention of Money Laundering Act, whose cognizance was taken by a special court.