Mumbai: In the ongoing Malegaon Rs 125 cr money laundering investigation, the Enforcement Directorate (ED) has identified at least 250 bank accounts spread across key locations in Mumbai, Gujarat, Delhi, Uttar Pradesh, and Chhattisgarh. These accounts are allegedly linked to shell companies and dubious business entities, proprietorships and partnership firms, many of which were established only a few months ago, potentially facilitating illicit financial transactions, the probe has revealed.
As part of its probe, the ED has issued notices to various banks, requesting detailed Know Your Customer (KYC) information and transaction records related to these dubious accounts.
The investigation has so far traced the movement of Rs 125 crore through 14 bank accounts in Malegaon and Nashik, which were reportedly opened by the arrested accused, Siraj Mohammad. The ED found that the network involving the 250 accounts was used to transfer substantial funds into these 14 Malegaon-based accounts.
According to officials privy to the investigation, suspect that the funds moved through these 250 bank accounts may be linked to a range of illegal activities, including Ponzi schemes, a betting app syndicate, cybercrime, and narcotics trade. The accounts appear to have been exclusively used to collect funds, which were subsequently transferred to other bank accounts opened by the arrested accused, Siraj Mohammad, and other unidentified individuals.
One of the key findings in the investigation reveals that the accused Siraj Mohammad allegedly opened these 14 accounts at Nashik Merchant Cooperative Bank, utilizing KYC documents acquired under false pretenses, claiming that they were for a new business aimed at making payments to farmers. This deceptive strategy allowed him to exploit the banking system and funnel significant sums into the Malegaon accounts.
The ED is working to trace the money trail and identify the mastermind behind this scam. The ED is now focused on unraveling the connections between the 250 bank accounts and the 14 Malegaon accounts, as well as identifying the true owners behind the shell companies involved.
Further analysis indicates that Rs 118 crore was credited to the 14 accounts at Nashik Merchant Cooperative Bank a few days ago and of this amount, Rs 14 crore was reportedly withdrawn through benami persons in Malegaon, while the remaining Rs 104 crore was rerouted to 22 other shell companies based in Navi Mumbai, Surat, and Ahmedabad, which were established within a short time frame. These companies were used to receive and further transfer illicit funds.
According to officials privy to the investigation, revealed that a significant portion of the money from these 22 shell companies was transferred to additional shell company accounts. Additionally, they also discovered that large sums were withdrawn in cash from different regions across India, with funds being transferred through hawala channels to various destinations.
According to the official sources, they are tracing a complex web of shell companies and business entities that were set up in the past six months solely to route illicit funds. According to sources involved in the probe, these entities, including sole proprietorships and partnership firms, appear to be strategically designed to layer the money trail, without engaging in any legitimate business operations.
The ED is utilising KYC data to trace the origin and routing of these funds and is also working to uncover the role of intermediaries involved in these transactions. At the heart of the operation are 250 bank accounts that have been identified in the first layer of the money trail. These accounts, located across India, are believed to be key to understanding where the illicit funds are generated and how they are distributed through the various layers of the money laundering network. Sources close to the investigation revealed that ED officials are working diligently to determine how funds flowed into these accounts, and are also exploring the possibility that the financial transactions could have international connections, with suspicions of offshore involvement that could link the money laundering network to foreign territories.
A BJP leader claimed that Siraj Mohammad Harun Memon, a key player in the scheme, has links to five business firms and bank accounts in Dubai. It is alleged that Memon's transactions with Indian banks amounted to over Rs 100 crore. Additionally, his co-conspirator, Salman Salil Mirza of M K Enterprise, reportedly received Rs 37.88 crore in his account.
ED Cracks Down On ₹125 Crore Money Laundering Syndicate Linked To Malegaon, Raids 23 Locations Across Maharashtra And Gujarat
The leader further alleged that Rs 252 crore was transferred to Siraj Mohammad's benami accounts in Malegaon from more than 200 bank accounts across 21 states of India. Furthermore, Rs 58 crore was distributed in cash to various agents in Malegaon. A total of 35 benami accounts were opened at the Malegaon branches of Nashik Merchant Cooperative Bank, Bank of Maharashtra, and ICICI Bank. Over Rs 200 crore was allegedly withdrawn through hawala channels and cash transactions, which were then distributed to various parts of Maharashtra.