ED attaches properties in cash-to-gold conversion scam
The properties attached include six shops and three residential flatsmumbai Updated: Nov 17, 2017 00:24 IST
The Enforcement Directorate (ED) attached properties worth Rs21.46 crore in connection with the currency conversion scam, in which a bullion trader was arrested for allegedly accepting Rs 84 crore during the demonetisation period and using it to purchase 258 kg of gold.
The accused Chandrakant Patel was arrested under section 19 of the Prevention of Money Laundering Act (PMLA) on October 22 this year and is presently under judicial custody.
ED said Patel was involved in converting money to gold during the demonetisation period. “In this case, large cash deposits to the tune of Rs84.5 crore were made in the account of M/sPihu Gold and M/sSatnam Jewels post demonetisation,” said an ED officer. “The said amount was deposited in cash within a short span of 41 days in November-December 2016. The said funds were subsequently transferred to the account of M/s Pushpak Bullion for purchase of 258kg gold bullion.”
The properties attached include six shops and three residential flats which belong to Patel and others.
ED sources said a lot of investment was made in gold and real estate using the illegal money after demonetisation, following which the agency focused on shell companies, gold dealers and banks.
“Patel was the mastermind who had collected cash in demonetised currency, deposited it in bank accounts of the two dummy companies in collusion with bank officials and subsequently layered the same through investments in gold bullion. The account of M/s Pushpak Bullion was declared a non-performing asset (NPA) account by the concerned bank,” said an ED officer.
First Published: Nov 17, 2017 00:24 IST