The ED had earlier interrogated a Kashmiri businessman Zahoor Watali, a co-accused in the case, in an investigation in the present matter under the provisions of FEMA against him for allegedly receiving funds from abroad. (File)
The Enforcement Directorate (ED) has conducted searches at 11 locations in Delhi and Mumbai in connection with an international hawala racket running into more than Rs 700 crore, officials said on Tuesday. The racket and searches are related to Dubai-based hawala operator Pankaj Kapur and his associates. The ED has registered a case of forex violations against them under the Foreign Exchange Management Act (FEMA), 1999.
During the searches, ED claimed to have recovered cash to the tune of Rs 29.19 lakh apart from incriminating documents and items which include electronic gadgets, diaries having record of hawala transactions and stamp of more than 150 shell firms. Further investigation is under progress, officials said.
ED sources said that the agency’s preliminary inquiry has revealed that the hawala transactions are being carried out by one of Kapur’s Indian companies, M/s Radhika Gems Pvt Ltd. The company allegedly collects money in cash in India and transfers the same to companies abroad against payment of import of diamonds. “These overseas companies are preliminarily found to be owned and controlled by Pankaj Kapur himself,” an ED statement said.
Searches were also conducted at offices of two chartered accountants and one Custom House Agent who allegedly helped Kapur in creating a web of shell firms and filing import documents with Customs Authority.