ED: Mumbai trader legalised Rs 150 crore with the aid of 4 banks
The Enforcement Directorate has accused four banks of helping a bullion trader from Zaveri Bazar of transferring Rs 150 crore in demonetised currency into legal channels
The Enforcement Directorate has accused four banks of helping a bullion trader from Zaveri Bazar of transferring Rs 150 crore in demonetised currency into legal channels. The ED alleged these transfers were made through fictitious transactions as the cash was deposited into accounts of several shell companies or firms that exist only on paper.
According to a report by The Times of India, although the trader claims to have received the money from clients as payment for gold sales, the ED believes that the cash was transferred into his account through RTGS (real-time gross settlement system), after the amount was deposited into the shell company accounts in order to purposely create a legitimate trail immediately after demonetisation.
The ED discovered that most people associated with these companies were fake and the firms had made no other transactions except transferring the money into the trader's account in instalments.
The bullion trader's modus operandi, according to ED officials, was to collect demonetised currency and selling gold at a premium, which was deposited into the accounts of the shell companies with the aid of hawala operators.
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