Enforcement Directorate hunts 300 shell companies; Bhujbal, Jagan Reddy on radar

Mangalore Today News Network

Apr 03, 2017: India’s financial crime investigation agency on Saturday raided more than 100 locations across 16 states in a sweeping crackdown on dubious companies suspected of money laundering on behalf of businesses and individuals including two top politicians.

The Enforcement Directorate (ED) launched the early morning raids targetting 300-odd shell companies, many of which are fronts for a slew of illegal transactions and crime and act as the backbone of India’s huge shadow economy. The raids were carried out under ‘Operation Shell Companies’.

“Some of the companies were involved in major money laundering cases related to Chaggan Bhujbal, YS Jagan Mohan Reddy, Yadav Singh, NHRM, AGS Infotech, Rajeshwar Exports etc while some other entities were found to have been used for laundering demonetised currency during post demonetization period,” the ED said in a statement.

Some of the searches were also in connection with a scam in the National Rural Health Mission scam in Uttar Pradesh as well as one involving the Jain brothers of Delhi, who were named by the agency when it attached a hotel in Dwarka managed by Radisson Blu in a money laundering case.

An agency official said the operation had three specific targets -- bogus import businesses, premises being used for conversion of black money to white and entry operators, actual people involved in money laundering.

“Investigations had revealed that certain entry operators and fraudsters were using network of companies (to launder money), some of which have been used repeatedly while some other were discarded after use or kept dormant for a long period,” said ED spokesperson AK Rawal.

“Some other entities were found to have been used for laundering demonetised currency during the post-demonetisation period,” Rawal added.