NEW DELHI: International hawala kingpin Naresh Jain, accused of operating and incorporating several shell entities across several countries, has been arrested by Delhi Police’s Economic Offences Wing (EOW).
Jain was arrested in Dubai for hawala activities in 2007, by NarcoticsControl Bureau in 2009 and later by Enforcement Directorate. “He was on the radar of Serious Organised Crime Agency, Britain, for money laundering. Two red corner notices had been issued against him by Interpol on the request of NCB-Rome and Dubai authorities,” said joint commissioner (EOW) OP Mishra.
EOW filed a case against Jain on a complaint by ED alleging large-scale money laundering, hawala transactions, FEMA violations, etc. “Jain used forged documents to get dummy companies incorporated, open bank accounts and get mobile connections. His syndicate had been operating offshore bank accounts opened in the name of shell companies in Hong Kong, Singapore and Dubai, etc,” said Mishra.
The probe conducted so far has revealed that hundreds of trading and tour-travel companies were incorporated in the name of people recruited by him for carrying out “circular trading” to show bogus turnover and hawala transactions. Several people appointed as directors and proprietors in the shell entities have been examined. The bogus entities were being run from offices opened at obscure locations in Vikaspuri, Pitampura, Janakpuri, Rohini, etc with multiple entities registered on one address.
“The accused was carrying out the activities in conspiracy with unscrupulous importers and exporters for hefty commission. Such importers procured false bills of entries from foreign exporters at very low rates to evade import duties. They paid commission through bank accounts of the shell companies,” said Mishra.
Jain operated around 450 Indian entities and over 100 foreign entities for carrying out the crimes.