ED attaches property of Chennai-based firm

Surat: The Directorate of Enforcement (ED) attached immovable properties worth Rs 7 crore of N Anantha Padmanabhan, a Chennai-based bullion trader, in connection with the bogus import case involving Afroz Fatta and R.A. Distributors Pvt. Ltd on Thursday.
Officials from Surat ED attached assets including 9,600 sq-ft land and commercial building with 20,292 sq-ft construction at Thyagarayanagar in Chennai held in the name of NAC Jewellers Private Limited, owned by Padmanabhan. The Rs 7 crore worth propoerties were attached under the provision of Prevention of Money Laundering Act (PMLA), 2002.
Official sources said that investigation under the PMLA was initiated based on a complaint received by the Surat Crime Branch police from ICICI Bank against M/s. 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.
Investigation conducted by ED revealed that nine companies having accounts in ICICI Bank at Surat remitted huge amounts of money on the basis of forged bills of entry to three companies in UAE and 15 companies in Hong Kong.
The main sources of credits in these accounts were from eight entities including Vandana & Co., M/s. Natural Trading Co., M/s. Maruti Tading, having accounts in Axis Bank along with 469 other entities. These eight main entities had received funds through various cheque discounters and a web of around 2,700 companies.
It was further revealed that Afroz Mohamed Hasan Fatta, Madanlal Jain, Bilal Haroon Gilani, Jayesh Desai, Rakesh Kothari were involved in this racket. These accused created shell companies using dummy directors and partners.
Official sources said that Jain, the main conspirator had earned commission for his role in the illegal transactions of foreign remittances made on the strength of fake bills of entry. Part of the said commission about Rs 7 crore was routed to the bank account of firm controlled by Padmanaban.
It was also established that this transaction has been carried out by Padmanaban with full knowledge that the money so received was tainted and further said money was utilized in business furtherance his jewellery company.
In order to cover up these transactions Jain prepared bogus invoices of sale and purchase of diamonds between M/s NAC Jewellers and M/s Natural Trading Co. (controlled by Jain) to show diamond purchases.
Earlier ED had arrested Afroz Fatta, Jain, Manish Shah, Rakesh Kothari and Jayesh Desai and attached their properties worth Rs 34.29 crore and filed five prosecution complaints before designated Special court.