The Enforcement Directorate (ED) has arrested Wasim Bawla on Thursday for money laundering by smuggling foreign origin betel nuts via Indo Burma border through shell companies based in the North East evading custom levies.
The ED had initiated a money laundering investigation on the basis of an FIR registered by the CBI, Nagpur.
Smuggling illicit consignments
The foreign origin betel nuts were transported to Nagpur by fabricating domestic invoices and transportation bills by Bawla actively involved in smuggling the restricted contraband betel nut consignments. He carried out the trade with support of traders from Assam, transporters, warehouse owners and shell entities providing bogus invoices to facilitate the sale and purchase of betel nuts in Nagpur region.
The Directorate of Revenue Intelligence (DRI) conducted a preliminary investigation against various traders in Nagpur who were procuring foreign origin betel nuts followed by ED searches at the premises of various Delhi traders involved in the betel nut business.
ED investigation revealed that large amounts were transferred to few Assam-based traders and cash withdrawn was used for purchase of smuggled foreign origin betel nuts.
The Probe
The probe agency registered a case against Bawla under the provisions of the Prevention of Money Laundering Act and summoned him for questioning.
According to ED officials, Bawla, the prime accused, evaded summons and questioning, changing mobile numbers and not participating in the search proceedings despite being present in Nagpur.
The ED has alleged that Bawla tried to bribe contractual staff of the investigative agencies to get secret official documents. “Bawla had given contradictory replies in his statements and his conduct is evasive and untruthful,” said the ED in a statement. He was arrested and produced before the Special PMLA Court in Mumbai which granted ED eight days custody for interrogation.
