CHENNAI: The Enforcement Directorate, Chennai, on Thursday attached immovable properties worth Rs 7 crore belonging to NAC Jewellers (P) Ltd under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA).
The seizure is in connection with a bogus import case involving Afroz Fatta and R A Distributors Pvt Ltd.
In an official release, the ED said the attached assets consists of the said 9600-square-foot land along with a commercial building that comprises basement, stilt, ground and 4 floors totalling to 20,292 square feet situated at T Nagar in Chennai.
The ED said an investigation under the PMLA was initiated based on a complaint received by the Crime Branch, Surat, from ICICI Bank against R A Distributors Pvt Ltd and others alleging that the companies had prepared fake bills of entry and presented the same before ICICI Bank for illegal outward remittance in the guise of import.
The investigation showed that nine companies having accounts in ICICI Bank, Surat, remitted a huge amount of money on the basis of forged bills of entry to three companies in the UAE and 15 companies in Hong Kong.
The main sources of credits in these accounts were from eight entities -- Vandana & Co, Natural Trading Co, Maruti Trading Co, and others who had accounts in Axis bank along with 469 other entities. The eight entities having accounts in Axis Bank had received funds through various cheque discounters and a web of around 2,700 companies.
It was further revealed that Afroz Mohamed Hasanfatta, Madanlal Jain, Bilal Haroon Gilani, Jayesh Desai and Rakesh Kothari were involved in this racket. They are accused of creating shell companies using dummy persons as directors or partners.
The investigation revealed Madanlal Jain was the main conspirator, who earned commission for his role in the illegal transactions of foreign remittances made on the strength of fake bills of entry. A part of the commission earned was routed to the bank account of NAC Jewellers (P) Ltd to the tune of Rs 7 crores.
This transaction was carried out by NAC Jewellers owner N Anantha Padmanaban with full knowledge that the money being received was tainted. He said he used this money in the furtherance of his business. In order to cover up these transactions, Madanlal Jain prepared bogus invoices of sale/purchase of diamonds by his company, M/s Natural Trading Co. from M/s NAC Jewellers.
Earlier, the ED had arrested Afroz Mohamed Hasanfatta, Madanlal Jain, Manish Shah, Rakesh Kothari and Jayesh Desai and attached their properties worth Rs 34.29 crore and filed five prosecution complaints before designated a special court.
The seizure is in connection with a bogus import case involving Afroz Fatta and R A Distributors Pvt Ltd.
In an official release, the ED said the attached assets consists of the said 9600-square-foot land along with a commercial building that comprises basement, stilt, ground and 4 floors totalling to 20,292 square feet situated at T Nagar in Chennai.
The ED said an investigation under the PMLA was initiated based on a complaint received by the Crime Branch, Surat, from ICICI Bank against R A Distributors Pvt Ltd and others alleging that the companies had prepared fake bills of entry and presented the same before ICICI Bank for illegal outward remittance in the guise of import.
The investigation showed that nine companies having accounts in ICICI Bank, Surat, remitted a huge amount of money on the basis of forged bills of entry to three companies in the UAE and 15 companies in Hong Kong.
The main sources of credits in these accounts were from eight entities -- Vandana & Co, Natural Trading Co, Maruti Trading Co, and others who had accounts in Axis bank along with 469 other entities. The eight entities having accounts in Axis Bank had received funds through various cheque discounters and a web of around 2,700 companies.
It was further revealed that Afroz Mohamed Hasanfatta, Madanlal Jain, Bilal Haroon Gilani, Jayesh Desai and Rakesh Kothari were involved in this racket. They are accused of creating shell companies using dummy persons as directors or partners.
The investigation revealed Madanlal Jain was the main conspirator, who earned commission for his role in the illegal transactions of foreign remittances made on the strength of fake bills of entry. A part of the commission earned was routed to the bank account of NAC Jewellers (P) Ltd to the tune of Rs 7 crores.
This transaction was carried out by NAC Jewellers owner N Anantha Padmanaban with full knowledge that the money being received was tainted. He said he used this money in the furtherance of his business. In order to cover up these transactions, Madanlal Jain prepared bogus invoices of sale/purchase of diamonds by his company, M/s Natural Trading Co. from M/s NAC Jewellers.
Earlier, the ED had arrested Afroz Mohamed Hasanfatta, Madanlal Jain, Manish Shah, Rakesh Kothari and Jayesh Desai and attached their properties worth Rs 34.29 crore and filed five prosecution complaints before designated a special court.
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