100-odd cos raided by ED in 16 states

100-odd cos raided by ED in 16 states

FPJ BureauUpdated: Thursday, May 30, 2019, 07:53 AM IST
article-image

black money crackdown Many of the shell companies are owned by politicians and family.

We are carrying out searches against the  farzi firms that are suspected to be involved in converting black money into white ED official.

New Delhi : In the biggest-ever crackdown on black money laundering, the Enforcement Directorate (ED) on Saturday mounted simultaneous raids at around 100 locations across 16 states aiming to bust shell companies.

The raids are being conducted under the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA), the main focus being in the cities of Delhi, Mumbai, Chennai, Kolkata, Ahmedabad, Chandigarh, Patna, Ranchi, Bengaluru and Bhubaneshwar.

Among the firms raided include those having alleged links with former Maharashtra deputy chief minister Chhagan Bhujbal of the Nationalist Congress Party (NCP), now in jail for alleged money laundering, YSR Congress leader Jagan Reddy and tainted Noida chief engineer Yadav Singh. Some of the searches were also in connection with the National Rural Health Mission scam in UP.

“We are carrying out searches against the “’farzi”’ firms that are suspected to be involved in converting black money into white,” said an ED official, adding that the crackdown is part of the government’’s intent to curb black money circulated by the shell companies.

The official said these firms were identified for alleged dubious transactions during the demonetisation. They came on the suspect list because of the sudden steep hike in their transactions not matched by any major business deals immediately after the demonetisation in November.

The primary focus is on the shell companies that came on the ED’’s radar for being active in exchanging the scrapped currency notes of Rs 1,000 and Rs 500 and illegally sending part of the money abroad in foreign exchange.

Shell companies act as fronts for a slew of illegal transactions. They are the backbone of India’s parallel economy that the government is now trying to stamp out.

Even before Saturday’s raids, the ED has already attached illegal assets worth crores on the basis of the investigations mounted after noticing spurt in transactions by some firms having otherwise hardly any business.

The ED had recently raided some front companies of Rajeshwar Exports, a company run by Jagan Reddy, to understand their modus operandi.

ED sources said some political leaders of Maharashtra, Tamil Nadu, West Bengal, Andhra Pradesh, Haryana and Punjab may also come under scrutiny for allegedly using these companies to convert their black money. They said identity of these leaders may come from the documents seized in the raids. on the shell companies.

RECENT STORIES

BMTC Conductor Mercilessly Assaults Lady Passenger On Bus; Video Goes Viral

BMTC Conductor Mercilessly Assaults Lady Passenger On Bus; Video Goes Viral

'Fake & Baseless': ECI Refutes Media Report Claiming Lok Sabha Elections Will Be Conducted Through...

'Fake & Baseless': ECI Refutes Media Report Claiming Lok Sabha Elections Will Be Conducted Through...

Arvind Kejriwal's wife, Sunita Kejriwal launches WhatsApp campaign 'Kejriwal ko Aashirwaad'

Arvind Kejriwal's wife, Sunita Kejriwal launches WhatsApp campaign 'Kejriwal ko Aashirwaad'

Bihar Lok Sabha Election 2024: INDIA Bloc Seals Seat-Sharing Deal, RJD To Contest 26 Seats, Congress...

Bihar Lok Sabha Election 2024: INDIA Bloc Seals Seat-Sharing Deal, RJD To Contest 26 Seats, Congress...

Don-Turned-Politician Mukhtar Ansari's 'Hummer' Wish That Remained Unfulfilled

Don-Turned-Politician Mukhtar Ansari's 'Hummer' Wish That Remained Unfulfilled