The Enforcement Directorate (ED), Mumbai provisionally attached immovable properties worth Rs 72.45 crore linked to the banned red sanders smuggling racket kingpin Badshah Majid Malik and his associate Vijay Subbanna Poojary in a money laundering case.
Badshah Malik was arrested in December 2021 by the Directorate of Revenue Intelligence (DRI) following a seizure of container with 7,800 metric tonnes of red sanders worth Rs 3.2 crore at Jawaharlal Nehru Port Trust (JNPT), Nhava Sheva.
Red sanders smuggled in guise of fabric glue, radiators
The accused smuggled red sanders in the guise of consignments of fabric glue, radiators and assorted colours, submitting forged documents of the companies situated in special economic zones (SEZs). Malik and the Mumbai based Emirates Shipping Agencies India Pvt Ltd were raided after the DRI intercepted the contraband consignment of the banned red sanders.
DRI arrested Malik and Poojary, filing prosecution complaints under various sections of the Customs Act for smuggling red sanders.
The case was picked by the ED to probe money laundering in the red sanders trafficking racket and investigation revealed that Malik was engaged in smuggling activities from 2008 to 2010 and 2014 to 2015 generating Rs 94 crore in the crime.
Malik infused share capital from bogus shell companies
“For the purposes of laundering the proceeds of crime, Malik established M/s Empire India Multi Trade Pvt Ltd and infused share capital from multiple bogus shell companies in lieu of cash through accommodation entry. A number of immovable properties were purchased by Malik and his associates through the company to evade detection,” the ED said in a statement.
The federal agency probed the money laundering aspect of the banned red sander trafficking racket of the DRI against Malik and associates and found that he amassed huge assets from the smuggling trade. The assets have now been attached by the ED under the provisions of the Prevention of Money Laundering Act (PMLA).
