ED launches money laundering probe in Thanawala investment fraud, examines 100-plus bank accounts

Thanawala is in judicial custody in a ₹18.35-crore fraud case registered by the Mumbai police’s Economic Offences Wing (EOW). The ED’s case is based on the same FIR

MUMBAI: The Enforcement Directorate (ED) is probing the alleged Thanawala Wealth Management investment fraud separately under the Prevention of Money Laundering Act (PMLA), and investigators are examining more than 100 bank accounts and transactions that may have been routed through 12-15 agents allegedly as per instructions from Dipen Rashmikant Thanawala, according to orders passed by a special PMLA court.

ED launches money laundering probe in Thanawala investment fraud, examines 100-plus bank accounts

In the order dated October 9, the special court permitted the ED to record Thanawala’s statement at Arthur Road jail between October 19-29, excluding October 20, after the ED said it needed additional time to scrutinise voluminous financial records.

Thanawala is in judicial custody in a ₹18.35-crore fraud case registered by the Mumbai police’s Economic Offences Wing (EOW). The ED’s case is based on the same first information report (FIR).

On October 6, the special court had allowed ED assistant director Mukul Jain to record Thanawala’s statement on October 19-20, after the agency alleged that Thanawala was a key suspect in its investigation as he had played a significant role in money laundering. The court’s order recorded the prosecution’s allegation that approximately 83 investors had been defrauded of ₹17.05 crore.

According to the ED’s submission, investors were induced to part with money through promises of lucrative returns, with small initial payouts allegedly used to build their confidence before repayments were stopped. The agency’s investigation is examining the financial trail in the alleged fraud.

Separately, complainants have cited an alleged fraud of more than ₹150 crore in a representation to the police, seeking a wider investigation into the investment scheme.

Dipen Thanawala and his father, Rashmikant Thanawala, were arrested by the EOW in April this year, in connection with the alleged ₹18.35-crore investment fraud. He has since moved the court seeking bail in the EOW case.

The ED’s proceedings are separate from the EOW investigation. The ED has sought to record Thanawala’s statement to investigate the alleged laundering of proceeds linked to the scheduled offences.

The October 9 order records the ED’s submission that scrutiny of more than 100 bank accounts and possible transactions involving 12-15 agents would require additional time; it does not record a finding that the alleged routes or diversion of funds have been established.