News Analysis India

Tag: Prevention of Money Laundering Act

  • UP gangster-turned-politician Mukhtar Ansari arrested by ED in money laundering case

    By PTI

    NEW DELHI: The Enforcement Directorate (ED) on Wednesday arrested jailed gangster-turned-politician Mukhtar Ansari in a money laundering case after he was produced before a local court in Uttar Pradesh, officials said.

    Ansari, a five-time former MLA, was lodged in a jail at Banda in Uttar Pradesh.

    The 59-year-old was questioned by the ED in this case last year.

    He was taken into custody by the ED under the criminal sections of the Prevention of Money Laundering Act (PMLA) after he was produced before a court in Prayagraj on the basis of a production warrant moved by the agency, according to official sources.

    His MLA son Abbas Ansari was also arrested by the federal probe agency in November after questioning at its sub-zonal office in Prayagraj. This was followed by the arrest of Mukhtar Ansari’s brother-in-law Atif Raza.

    The money laundering case against Mukhtar Ansari stems from multiple FIRs lodged by the Uttar Pradesh Police apart from two more FIRs lodged against a company called Vikas Constructions (a partnership firm) that was run by his wife, two brother-in-laws (including Atif Raza) and others.

    Mukhtar Ansari is under the ED scanner in connection with at least 49 criminal cases booked against him including those on charges of land grabbing, murder and extortion. He faces trial in Uttar Pradesh in several cases, including attempt to murder and murder.

    NEW DELHI: The Enforcement Directorate (ED) on Wednesday arrested jailed gangster-turned-politician Mukhtar Ansari in a money laundering case after he was produced before a local court in Uttar Pradesh, officials said.

    Ansari, a five-time former MLA, was lodged in a jail at Banda in Uttar Pradesh.

    The 59-year-old was questioned by the ED in this case last year.

    He was taken into custody by the ED under the criminal sections of the Prevention of Money Laundering Act (PMLA) after he was produced before a court in Prayagraj on the basis of a production warrant moved by the agency, according to official sources.

    His MLA son Abbas Ansari was also arrested by the federal probe agency in November after questioning at its sub-zonal office in Prayagraj. This was followed by the arrest of Mukhtar Ansari’s brother-in-law Atif Raza.

    The money laundering case against Mukhtar Ansari stems from multiple FIRs lodged by the Uttar Pradesh Police apart from two more FIRs lodged against a company called Vikas Constructions (a partnership firm) that was run by his wife, two brother-in-laws (including Atif Raza) and others.

    Mukhtar Ansari is under the ED scanner in connection with at least 49 criminal cases booked against him including those on charges of land grabbing, murder and extortion. He faces trial in Uttar Pradesh in several cases, including attempt to murder and murder.

  • Court extends judicial custody of NCP leader Nawab Malik in ED case 

    By PTI

    MUMBAI: A special court here on Wednesday extended the judicial custody of Nationalist Congress Party leader Nawab Malik till November 2 in an alleged money laundering case.

    Malik, a former Maharashtra minister, was arrested on February 23 under the Prevention of Money Laundering Act (PMLA) by the Enforcement Directorate in a probe linked to the activities of fugitive gangster Dawood Ibrahim and his aides.

    The ED has also filed an application before the special PMLA court seeking that a medical board should ascertain Malik’s health status.

    The court said it would hear the plea on November 2.

    In May, the court had allowed Malik to be admitted to a private hospital for medical treatment while denying him bail on health grounds.

    MUMBAI: A special court here on Wednesday extended the judicial custody of Nationalist Congress Party leader Nawab Malik till November 2 in an alleged money laundering case.

    Malik, a former Maharashtra minister, was arrested on February 23 under the Prevention of Money Laundering Act (PMLA) by the Enforcement Directorate in a probe linked to the activities of fugitive gangster Dawood Ibrahim and his aides.

    The ED has also filed an application before the special PMLA court seeking that a medical board should ascertain Malik’s health status.

    The court said it would hear the plea on November 2.

    In May, the court had allowed Malik to be admitted to a private hospital for medical treatment while denying him bail on health grounds.

  • PFI involved in money laundering, ED tells court which sends 3 accused to jail for 14 days

    By PTI

    NEW DELHI: Popular Front of India (PFI) has been involved in continuous offences of money laundering over the years, the Enforcement Directorate Friday told a Delhi Court which remanded three arrested office bearers of the banned outfit to 14 days of judicial custody.

    The agency also said that its investigation had revealed that the accused persons played an “active role” in raising or receiving “bogus cash donations on behalf of PFI.”  The agency arrested the three accused, Perwez Ahmad, President of PFI Delhi, Mohd.

    Ilias, general secretary of the Delhi unit, and its office secretary Abdul Muqeet on September 22 for their alleged role in the offence of money laundering in the guise of cash donations.

    Additional Sessions Judge Shailender Malik remanded the three accused to 14 days of judicial custody after they were produced before him on completion of their seven days of custodial interrogation.

    The ED in its remand application said “Prevention of money laundering Act (PMLA) investigation has revealed that as part of a criminal conspiracy hatched by PFI office bearers over the past many years, suspicious funds from within the country and abroad have been raised by PFI and related entities,” It also said that the funds were “clandestinely remitted” to India and deposited in their bank accounts.

    Elaborating further, the agency said that the funds were layered, placed, and integrated through the numerous bank accounts of the organisation as well as other PFI members or sympathisers.

    “Thus, PFI and its related entities have been involved in the continuous offence of money laundering over the years,”ED said.

    “Investigation qua the accused persons has revealed that they have played an active role in (raising or receiving ) bogus cash donations on behalf of PFI,” ED added.

    The accused also claimed and projected PFI’s unaccounted cash, received through unknown and suspicious sources, as legitimate, it said.

    As the investigation in the case was continuing and required the gathering of additional information along with the examination of voluminous data from digital devices, the court could grant judicial custody of the accused, the remand application said.

    Further, judicial custody was also required to ensure that the accused did not influence witnesses or tamper with evidence, the application said. Earlier, on September 24 the court had allowed the ED seven days’ custody of the three accused.

    NEW DELHI: Popular Front of India (PFI) has been involved in continuous offences of money laundering over the years, the Enforcement Directorate Friday told a Delhi Court which remanded three arrested office bearers of the banned outfit to 14 days of judicial custody.

    The agency also said that its investigation had revealed that the accused persons played an “active role” in raising or receiving “bogus cash donations on behalf of PFI.”  The agency arrested the three accused, Perwez Ahmad, President of PFI Delhi, Mohd.

    Ilias, general secretary of the Delhi unit, and its office secretary Abdul Muqeet on September 22 for their alleged role in the offence of money laundering in the guise of cash donations.

    Additional Sessions Judge Shailender Malik remanded the three accused to 14 days of judicial custody after they were produced before him on completion of their seven days of custodial interrogation.

    The ED in its remand application said “Prevention of money laundering Act (PMLA) investigation has revealed that as part of a criminal conspiracy hatched by PFI office bearers over the past many years, suspicious funds from within the country and abroad have been raised by PFI and related entities,” It also said that the funds were “clandestinely remitted” to India and deposited in their bank accounts.

    Elaborating further, the agency said that the funds were layered, placed, and integrated through the numerous bank accounts of the organisation as well as other PFI members or sympathisers.

    “Thus, PFI and its related entities have been involved in the continuous offence of money laundering over the years,”ED said.

    “Investigation qua the accused persons has revealed that they have played an active role in (raising or receiving ) bogus cash donations on behalf of PFI,” ED added.

    The accused also claimed and projected PFI’s unaccounted cash, received through unknown and suspicious sources, as legitimate, it said.

    As the investigation in the case was continuing and required the gathering of additional information along with the examination of voluminous data from digital devices, the court could grant judicial custody of the accused, the remand application said.

    Further, judicial custody was also required to ensure that the accused did not influence witnesses or tamper with evidence, the application said. Earlier, on September 24 the court had allowed the ED seven days’ custody of the three accused.

  • SC agrees to hear in open court plea seeking review of PMLA judgement

    By Express News Service

    NEW DELHI: The Supreme Court on Wednesday agreed to hear an open court plea by Congress MP Karti Chidambaram seeking a review of the judgment that upheld the provisions of the Prevention of Money Laundering Act, 2002.

    “The application for oral hearing is allowed. List the matter in the Court on 25.08.2022,” the bench of CJI NV Ramana, Justices Dinesh Maheshwari and CT Ravikumar said in their order.

    The review was sought against the judgement dated July 27 passed by the bench headed by Justice AM Khanwilkar (now retired) in a batch of more than 200 petitions that empowered ED for making arrests, conducting search and seizures and attaching proceeds of crime. The SC bench also comprising Justices Dinesh Maheshwari and CT Ravikumar had also observed that it was not an “ordinary offence.”

    Chidambaram in the petition had argued that the judgment deserved to be reviewed on grounds of grave error and was contrary to article 20 (Protection in respect for conviction of offences) and 21 (Protection of life and personal liberty) of the Constitution and settled principles of criminal jurisprudence.

    NEW DELHI: The Supreme Court on Wednesday agreed to hear an open court plea by Congress MP Karti Chidambaram seeking a review of the judgment that upheld the provisions of the Prevention of Money Laundering Act, 2002.

    “The application for oral hearing is allowed. List the matter in the Court on 25.08.2022,” the bench of CJI NV Ramana, Justices Dinesh Maheshwari and CT Ravikumar said in their order.

    The review was sought against the judgement dated July 27 passed by the bench headed by Justice AM Khanwilkar (now retired) in a batch of more than 200 petitions that empowered ED for making arrests, conducting search and seizures and attaching proceeds of crime. The SC bench also comprising Justices Dinesh Maheshwari and CT Ravikumar had also observed that it was not an “ordinary offence.”

    Chidambaram in the petition had argued that the judgment deserved to be reviewed on grounds of grave error and was contrary to article 20 (Protection in respect for conviction of offences) and 21 (Protection of life and personal liberty) of the Constitution and settled principles of criminal jurisprudence.

  • ED files chargesheet against Farooq Abdullah

    By Express News Service

    NEW DELHI: The Enforcement Directorate has charged Farooq Abdullah, the former chief minister of the erstwhile state of Jammu and Kashmir, and others for financial irregularities in the Jammu and Kashmir Cricket Association. The agency has filed a supplementary charge sheet under the provisions of the Prevention of Money Laundering Act, before the court in Srinagar.

    The charge sheet was filed against Abdullah, Ahsan Ahmad Mirza, Mir Manzoor Gazanffer and others. The court has issued notices to the accused for appearance before the PMLA Special Court on Aug. 27. The supplementary charge sheet was preceded by three provisional attachment orders where movable as well as immovable assets to the extent of `21.55 crore belonging to the accused were attached.

    NEW DELHI: The Enforcement Directorate has charged Farooq Abdullah, the former chief minister of the erstwhile state of Jammu and Kashmir, and others for financial irregularities in the Jammu and Kashmir Cricket Association. The agency has filed a supplementary charge sheet under the provisions of the Prevention of Money Laundering Act, before the court in Srinagar.

    The charge sheet was filed against Abdullah, Ahsan Ahmad Mirza, Mir Manzoor Gazanffer and others. The court has issued notices to the accused for appearance before the PMLA Special Court on Aug. 27. The supplementary charge sheet was preceded by three provisional attachment orders where movable as well as immovable assets to the extent of `21.55 crore belonging to the accused were attached.

  • ED raids multiple locations in ÀBG Shipyard bank loan fraud case

    By PTI

    NEW DELHI: The Enforcement Directorate (ED) on Tuesday raided multiple premises in Mumbai, Pune and Surat in connection with a money laundering probe against ABG Shipyard Ltd in an alleged Rs 22,842 crore bank loan fraud case, officials said.

    As many as 26 premises are being searched in these cities by the federal agency under the criminal sections of the Prevention of Money Laundering Act (PMLA), they said.

    The ED had filed a money laundering case in February after studying a CBI FIR against the former promoters of the ship building company.

    The CBI had booked ABG Shipyard Ltd and its then chairman and managing director Rishi Kamlesh Agarwal along with others for allegedly cheating a consortium of banks of over Rs 22,842 crore.

    It had also named the then executive director Santhanam Muthaswamy, directors Ashwini Kumar, Sushil Kumar Agarwal and Ravi Vimal Nevetia and another company ABG International Pvt Ltd for alleged offences of criminal conspiracy, cheating, criminal breach of trust and abuse of official position under the Indian Penal Code (IPC) and the Prevention of Corruption Act.

  • Delhi HC expects Centre to ensure PMLA appellate tribunal becomes functional by September

    By PTI

    NEW DELHI: The Delhi High Court Thursday said it expects the Centre to ensure that the Appellate Tribunal of Prevention of Money Laundering Act (ATPMLA) in the national capital is made functional by September 14.

    The court said numerous petitions are being filed before it every day assailing the judgements passed by the PMLA adjudicating authority as the appeals are not being taken up by the appellate tribunal due to want of quorum.

    Justice Rekha Palli was informed by the counsel for the Centre that the process of appointment was underway.

    “It is expected that before the next date of hearing on September 14, the respondent will ensure that the tribunal is made functional,” the court said.

    The court issued notice to the Centre, represented through standing counsel Manish Mohan, on a petition filed by Fullerton India Credit Company Limited seeking direction to appoint the chairperson as the presiding officer to the appellate tribunal constituted under the PMLA to deal with economic offence cases under various laws including money laundering.

    The petition, filed through advocate Jagdeep Sharma, said the petitioner is a non banking finance company and is in the business of extending various types of loan facilities in India.

    The plea said it was constraint to approach the high court against the inaction of the government to appoint the chairman of ATPMLA despite the fact that the tribunal does not have the chairman for over two years and due to which the petitioner’s case has not been listed for hearing for more than a year.

    The tribunal is mandated to consist of a Chairman, who has to be a retired judge of this court or high court and four members, who can be from the fields of law, finance and management.

  • ED attaches helicopter, 100 land parcels in Mumbai in PMLA case against Unitech group

    By PTI
    NEW DLEHI: The Enforcement Directorate (ED) has attached a helicopter and over 100 land parcels in Mumbai worth a total of Rs 81 crore in connection with a money-laundering probe against realty firm Unitech Group, the agency said on Wednesday.

    It said a provisional order for attachment of these properties owned by the Shivalik Group and its associates has been issued under criminal sections of the Prevention of Money Laundering Act (PMLA).

    The total value of the helicopter, owned by King Rotors Air Charters Pvt Limited, and the 101 land parcels located in Mumbai’s Santa Cruz area is Rs 81.10 crore, the ED said in a statement.

    The action has been taken “in relation to the investigation being conducted against Unitech Group”, the probe agency said.

    While the plots of land are owned by the Shivalik Group, the company that owns the chopper is its associate firm, it said.

    The probe has “revealed that Unitech Group had diverted proceeds of crime to the tune of Rs 574 crore to Shivalik Group and, in turn, the entities of Shivalik Group purchased the said land parcels and helicopter from these proceeds of crime,” the ED alleged.

    The Enforcement Directorate, early this year, filed a criminal case under various sections of the PMLA against the Unitech Group and its promoters over allegations that the owners — Sanjay Chandra and Ajay Chandra — illegally diverted over Rs 2,000 crore to Cyprus and Cayman Island.

    The case was booked after the ED studied some FIRs filed by the Delhi Police’s Economic Offences Wing (EOW) against these promoters and the company, including an instance where they allegedly failed to complete a housing project on time in Gurgaon.

    On March 4, the ED also carried out raids at 35 locations of the Shivalik Group, Trikar Group, Unitech Group and Carnoustie Group in Mumbai and at the national capital region after the registration of the case.

    “After analysis of the seized records followed by the disclosures of various persons, the above diversion of proceeds of crime has been unearthed,” it alleged.

    The total attachment in this case now stands at Rs 431 crore as two similar orders were earlier issued that froze assets worth Rs 349.82 crore.

  • PMLA: Bail of Shiv Sena MLA Pratap Sarnaik’s ‘associate’ Amit Chandole rejected

    By PTI
    MUMBAI: A special PMLA court in Mumbai on Saturday rejected the bail plea of Amit Chandole, an alleged associate of Shiv Sena MLA Pratap Sarnaik, in a money laundering case lodged by the Enforcement Directorate.

    Chandole was arrested in November last year under the Prevention of Money Laundering Act in a case involving a firm providing security services and others.

    His bail plea was rejected by special PMLA Judge A A Nandgoankar, though the detailed order had not been made available as yet.

    The ED has said it is probing alleged suspicious dealings of Chandole, Sarnaik, security service providing firm Tops Group and its promoter Rahul Nanda, all of whom have denied the allegations.

  • ED summons Sanjay Raut’s wife again in PMC Bank money laundering case

    By PTI
    MUMBAI: The ED has issued fresh summons against Varsha Raut, wife of Shiv Sena leader Sanjay Raut, for a second round of questioning on January 11 in connection with the Rs 4,300 crore PMC Bank money laundering case, official sources said.

    Varsha Raut was grilled and her statement recorded under the Prevention of Money Laundering Act (PMLA) by the central probe agency for the first time on January 4 at its office here.

    The agency wants to question her further and hence she has been summoned to appear on January 11, the sources said.

    The agency is probing her role in the alleged bank loan scam with regard to transfer of Rs 55 lakh funds by the wife of an accused in the case, Pravin Raut, apart from some other transactions.

    Pravin Raut has been a director in a infrastructure company called Guruashish constructions and is stated to be a subsidiary of the HDIL (Housing Development Infrastructure Limited), an accused firm in this case.

    Pravin Raut was arrested in the past by the state police economic offences wing.

    The ED had recently attached Pravin Raut’s assets worth Rs 72 crore in this case and has questioned him and his wife Madhuri Raut in the past.

    The agency had alleged that Pravin Raut had “siphoned off” Rs 95 crore worth funds from the scam-hit bank in the garb of loan, out of which he paid Rs 1.

    6 crore to his wife Madhuri Raut who subsequently transferred Rs 55 lakh in two tranches to Varsha Raut, wife of Sanjay Raut, as “interest free loan.

    ” “The amount was further utilised for purchase of flat in Dadar East, Mumbai,” the ED had said.

    Probe found that Varsha Raut and Pravin Raut “are partners in Avani Construction and Varsha Raut has received Rs 12 lakh from this entity (as overdrawn capital converted to loan) on a contribution of mere Rs 5,625.

    ” “The loan amount of Rs 12 lakh still remains outstanding,” it had said.

    Sanjay Raut, 59, is a Rajya Sabha MP and also a spokesperson of the Shiv Sena, which is in power in Maharashtra and is a former ally of the BJP.

    The MP, while holding a press conference here sometime back, had denied any wrongdoing on the part of his wife and said they have been in correspondence with the ED in connection with the case for about one-and-a-half months.

    Official sources said the agency is also probing the role of a former Shiv Sena legislator with regard to a Rs 1 crore transaction between the PMC Bank and an association linked to him.

    The ED had filed a criminal case of money laundering to probe the alleged loan fraud in the Punjab and Maharashtra Co-operative (PMC) Bank in October last year against Housing Development Infrastructure Ltd (HDIL), its promoters Rakesh Kumar Wadhawan, his son Sarang Wadhawan, its former chairman Waryam Singh and ex-managing director Joy Thomas.

      It took cognisance of a Mumbai Police economic offences wing FIR against them that charged them for causing “wrongful loss, prima facie to the tune of Rs 4,355 crore to the PMC Bank, and corresponding gains to themselves”.