NEW DELHI: The Enforcement Directorate arrested a Delhi businessman, Gagan Dhawan, on Wednesday in a money laundering case related to defrauding banks of more than Rs 5,000 crore. Dhawan is also being investigated in connection with pay-offs in a politically sensitive case involving some Congress leaders and their relatives, as well as income tax officials.
The businessman was arrested after questioning by the agency. He was later produced before a special court here which remanded him in ED custody for seven days.
The ED had booked a case under the Prevention of Money Laundering Act after the CBI registered an FIR against Vadodarabased Sterling Biotech Ltd (SBL) and its directors and other associates.
The ED had earlier searched the firm's 11 premises in Mumbai, Delhi and Gujarat for alleged money laundering. Some of the transactions were traced to Nigeria, Dubai, British Virgin Island and the US, sources claimed. The modus operandi, explained an official, was to launch over a hundred "paper firms" that laundered money abroad through hawala and by conducting exports on fake invoices and inflated bills.
Both the CBI and the ED have been probing SBL and Sandesara group. Dhawan is an important link for the agencies probing the case of money laundering.
"Information has also been received in respect of 13 individuals/entities that includes SBL, Blue Mark Mercantile and Sandesara group for high value suspicious transactions," a senior official investigating the case said.
Besides Dhawan, a Delhi-based lawyer who is a close relative of a Congress leader, is also being probed for alleged laundering. The agencies, sources claimed, have unearthed details of several transactions, including purchase of a farmhouse and some other properties, involving him.
Shokeen Properties and its transactions involving Dhawan are being probed One principal commissioner of I-T and two commissioner-rank I-T officials have also been accused along with the lawyer in this case by the ED and the CBI.
The CBI had first registered an FIR in the case on August 30 and later turned it into a case under the PMLA by ED. The CBI recently registered a second FIR, follow by a PMLA case.
"It is suspected that SBL in connivance with a Dubai-based NRI and his entities perpetrated a fraudulent scheme whereby the NRI subscribed the global depositary receipts of the company to the tune of $15.39 million, with the subscription money availed as loan from the banks for which the issuer company (SBL) itself gave the security to the banks," a senior ED official said.
The businessman was arrested after questioning by the agency. He was later produced before a special court here which remanded him in ED custody for seven days.
The ED had booked a case under the Prevention of Money Laundering Act after the CBI registered an FIR against Vadodarabased Sterling Biotech Ltd (SBL) and its directors and other associates.
The ED had earlier searched the firm's 11 premises in Mumbai, Delhi and Gujarat for alleged money laundering. Some of the transactions were traced to Nigeria, Dubai, British Virgin Island and the US, sources claimed. The modus operandi, explained an official, was to launch over a hundred "paper firms" that laundered money abroad through hawala and by conducting exports on fake invoices and inflated bills.
Both the CBI and the ED have been probing SBL and Sandesara group. Dhawan is an important link for the agencies probing the case of money laundering.
"Information has also been received in respect of 13 individuals/entities that includes SBL, Blue Mark Mercantile and Sandesara group for high value suspicious transactions," a senior official investigating the case said.
Besides Dhawan, a Delhi-based lawyer who is a close relative of a Congress leader, is also being probed for alleged laundering. The agencies, sources claimed, have unearthed details of several transactions, including purchase of a farmhouse and some other properties, involving him.
Shokeen Properties and its transactions involving Dhawan are being probed One principal commissioner of I-T and two commissioner-rank I-T officials have also been accused along with the lawyer in this case by the ED and the CBI.
The CBI had first registered an FIR in the case on August 30 and later turned it into a case under the PMLA by ED. The CBI recently registered a second FIR, follow by a PMLA case.
"It is suspected that SBL in connivance with a Dubai-based NRI and his entities perpetrated a fraudulent scheme whereby the NRI subscribed the global depositary receipts of the company to the tune of $15.39 million, with the subscription money availed as loan from the banks for which the issuer company (SBL) itself gave the security to the banks," a senior ED official said.
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