Network of CAs and Hawala Operators Uncovered: Over Rs 10,000 Crore in Black Money Diverted Abroad Through 98 Shell Companies

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Massive Black Money Laundering Network Uncovered by Enforcement Directorate

NEW DELHI: In a significant crackdown on financial crime, the Enforcement Directorate (ED) has exposed a vast black money laundering network reportedly involving Chartered Accountants (CAs) and hawala operators, with more than Rs 10,000 crore allegedly funneled abroad over the past few years. The investigation reached a critical stage following coordinated searches across Thane, Mumbai, and Varanasi on January 2, yielding digital evidence and documents outlining the elaborate scheme.

At the center of the operation is Jitendra Pandey, identified as the primary architect of this extensive network. Authorities allege that he set up over 98 shell companies and utilized 269 bank accounts to facilitate the transfer of "proceeds of crime" to destinations including Singapore, Hong Kong, and Thailand. The investigation revealed a sophisticated method whereby RTGS entry operators were used to create complex layers of transactions, obscuring the actual source of funds.

The recently discovered evidence indicates that these funds were funneled to twelve private limited companies, which purportedly engaged in importing goods from China. These shell firms falsely claimed to be involved in freight and logistics, disguising significant remittances as legitimate freight charges.

Moreover, the ED has pinpointed the involvement of several chartered accountants who allegedly aided in establishing these fictitious companies while ensuring compliance with regulatory frameworks, including filings with the Registrar of Companies (ROC).

Pandey, previously arrested by the Economic Offences Wing of Thane police last year, remains a focal point in the ongoing investigation. As authorities deepen their probe, they are determined to uncover the full scope of this intricate laundering operation and bring all those implicated to justice. Further developments are anticipated as the ED continues its efforts against black money activities in India.

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