02 April,2017 10:22 AM IST | | Vijay Kumar Yadav
Among the 100 firms searched nationwide, 35 are in Mumbai alone
Representational Image
The Enforcement Directorate (ED) conducted searches at more than 100 locations in 16 states yesterday, in which 35 locations were in Mumbai, as part of its crackdown on shell companies, which facilitated conversion of black money into white after demonetisation. Many of these firms were found to have been involved in major money-laundering cases investigated by the central agency.
The ED, which has on its radar over 500 chartered accountants and entry operators, managed to uncover around 2,300 shell companies. The raids were carried out under the Prevention of Money Laundering Act and the Foreign Exchange Management Act in Mumbai, Delhi, Chennai, Bengaluru, Bhubaneswar, Kolkata and other metros.
Major busts
Nearly 50 individuals, right from the driver to CEO of these companies, are under scanner. The shell companies cracked down on in Mumbai are also found to be linked to the Rs 870-crore Maha Sadan scam, in which former Maharashtra deputy chief minister Chhagan Bhujbal is an accused, and in the Rs 1,500-crore money laundering case involving city-based diamond trading company Rajeshwar Export.
During the exercise, the ED found out that the main controller of operators running shell companies in Mumbai, is Andheri resident Jagdish Purohit, who is also the director of one of Bhujbal's companies and has been named in the Maha Sadan scam case. Purohit is alleged to have been running 700 shell companies from one address with 20 dummy directors. He also allegedly converted nearly R50 crore for Bhujbal, a senior ED officer told mid-day. The probe, so far, has also revealed that Ritesh Jain of Rajeshwar Export converted Rs 2 crore.
Sources said many of these companies, also involved in money laundering, were formed post-demonetisation to convert black money into white. They transferred money when exchange of old Rs 500 and Rs 1,000 notes was allowed.
Corrupt list
ED said that apart from the Bhujbal and Rajeshwar Export cases, searches were carried out at shell companies connected to Jagan Mohan Reddy, Mayawati's brother Anand in the NRHM scam, and shell companies and its operators used by Yadav Singh of NOIDA corruption scam. The raids will continue for another few days.
