Enforcement Directorate has attached fixed deposits worth Rs 5 crore of Mumbai-based diamond trader Madanlal Jain in connection with the money laundering case of Hawala operator Afroz Fatta.
A provisional order dated March 31 was issued, whereby the amount of Rs.5 crores in the form of fixed deposits has been attached.
The total worth of properties attached in this case is now worth Rs 14.74 crores.
HERE IS ALL YOU NEED TO KNOW
- Apart from Jain, Hawala trader Afroz Fatta and Bilal Haroon Galani among others were found involved in sending illegal remittances to UAE and Hong Kong from accounts of 9 companies in ICICI Bank, Surat on the basis of forged bills of entry.
- These nine companies received funds from several Axis Bank accounts. These account holders, in turn, received funds from entities such as Arjay Gems Private Ltd., Center Point Gems Private Ltd., Clair Diamond Private Ltd. and Diablue Export Pvt Ltd among others.
- These were shell companies mainly created, controlled and supervised by Madanlal Jain, using dummy people as directors or partners.
- The funds for carrying out these remittances in the form of cash were infused into the system mainly through cheque discounting and a web of companies and were then transferred to the ICICI bank accounts.
- Madanlal Jain had diverted funds to the tune of Rs 5 crore to one of his companies namely Orient City Scape Pvt Ltd for further investment in Sarr Realtors and Rigveda Properties Pvt. Ltd.
- Investigation under the Prevention of Money Laundering Act, 2002 on the basis of FIRs registered in 2014 by Surat Crime Branch revealed that an amount totalling Rs 5,395.75 crore was remitted to companies in the UAE and Hong Kong.