The Enforcement Directorate (ED), Nagpur, has arrested a businessman under the provisions of the Prevention of Money Laundering Act (PMLA) in a case of defrauding and cheating. The accused, Laxmi Narain Kaushik, was produced before the Special PMLA Court in Nagpur on Thursday, where he was remanded in ED custody for 7 days.
Details of investigation
The ED said in their statement that they initiated an investigation based on two FIRs registered by the Vapi police station, Gujarat. It has been alleged that between 2018 and 2020, Kaushik, along with his accomplice, entered into a criminal conspiracy and committed criminal breach of trust with M/s Welspun Living Limited by procuring low-quality cotton at inflated costs for his own financial benefit. Additionally, he is accused of engaging in extortion and threatening witnesses.
During their investigation, the ED discovered that Kaushik received unexplained credits in companies and entities beneficially owned and controlled by him from bogus entities and shell companies. These funds were then routed through a complex network of entities controlled by him. He allegedly created two companies to layer and integrate the proceeds of crime to make them appear legitimate.
