The Enforcement Directorate (ED) today arrested two people in separate cases for allegedly running shell companies.
In the first case, the ED arrested G Dhananjaya Reddy, an engineering graduate in Industrial Production, for allegedly floating more than 20 shell companies.
The accused, who belongs to Bengaluru, obtained loans through dubious means by submitting forged documents and impersonation. He defrauded United Bank of India and other banks of more than Rs 70 crore.
HIS MODUS OPERANDI
"He had submitted forged documents of several immovable properties as third-party collateral to the banks and had got loans sanctioned in the name of various shell companies," an ED official said.
Part of his modus operandi was to transfer the funds from the shell companies in India to the companies he had floated in Dubai and do round-tripping of funds to evade tax.
According to the official, the accused would never repay the loan and was a wilful defaulter. He was produced before the Special PMLA Court in Bengaluru and remanded in ED custody for two days.
ARREST FROM CHENNAI
In the second case, K Liakath Ali was arrested in Chennai under the Prevention of Money Laundering Act (PMLA) for remitting foreign exchange through shell companies using fake documents.
He allegedly duped the Indian Bank's Thousand Lights Branch using eight shell companies and remitted USD 11,778,120 (Rs 78 crore approx) out of India on the basis of forged Bill of Entries without affecting any actual imports.
The Indian Bank had flagged the issue and the Chennai Customs confirmed that the bills were fabricated. The Customs referred the matter to the Enforcement Directorate for a detailed investigation.
An FIR was registered by the Central Crime Branch of Chennai Police and action under the PMLA was initiated against Liakath Ali.
USING MULTIPLE PAN CARDS
The Enforcement Directorate investigation identified Eliyas Peer Mohamed and Liakath Ali, both brothers, as masterminds who floated the shell companies and operated firms with the names of Galaxy Impex, Green International, Snow City & Co., etc., by opening fictitious bank accounts with various banks.
Further investigation revealed that the accused was in possession of multiple PAN cards and used them to open accounts with various banks.
Liakath Ali was produced before the court of judicial magistrate and remanded in judicial custody. Further, funds totalling about Rs 20 crore, which were parked in different bank accounts, have been frozen.
(with inputs from IANS)