ED conducts searches in ₹400 cr illegal foreign remittances case

The large-scale foreign remittances were allegedly sent by accused entities in lieu of payments for illegal imports of gold, diamond and precious stones. The agency’s search operations resulted in the recovery and seizure of cash of ₹10 lakh, incriminating records and digital devices.

MUMBAI: The Enforcement Directorate (ED) has carried out searches at 16 locations in Mumbai and four other cities as part of its money-laundering investigation into alleged illegal foreign remittances worth ₹400 crore in lieu of smuggled valuables.

The Enforcement Directorate (ED) has carried out searches at 16 locations in Mumbai and four other cities as part of its money-laundering investigation into alleged illegal foreign remittances worth ₹400 crore in lieu of smuggled valuables. (Shutterstock)

The large-scale foreign remittances were allegedly sent by accused entities in lieu of payments for illegal imports of gold, diamond and precious stones, according to ED. The agency’s search operations resulted in the recovery and seizure of cash of ₹10 lakh, incriminating records and digital devices. Apart from Mumbai, the inter-state search operations were conducted in Jaipur, Ajmer, Udaipur (Rajasthan) and Noida (Uttar Pradesh).

ED had initiated its investigation based on various chargesheets filed by Customs (Preventive) Commissionerate, Jodhpur, under sections of the Customs Act. The probe revealed that around ₹400 crore were remitted to multiple overseas entities through various bank accounts of two accused firms under the scanner.

ED sources said the probe revealed that the remittances were sent to certain firms located in Hong Kong and United Arab Emirates. “The transactions were routed through a web of multiple shell companies, camouflaged as payments against import of services, which were never received, “ an ED official said. “In reality, however, the funds were remitted outside India against the illegal import of gold/diamonds/precious stones, the probe has revealed.”