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ED arrests Mumbai bullion trader under PMLA for purchasing 258 kg gold

ED is probing the case under PMLA and it is expected to produce Patel in a special Mumbai court on Saturday

Press Trust of India  |  Mumbai 

Gold, gold imports

The ED on Friday arrested a city-based trader for allegedly purchasing a whopping 258 kg of in about a month's time post demonetisation using tainted money.

The central probe agency said it arrested "Chandrakant Narsidas Patel of M/s Bullions Private Limited for money laundering in the post demonetisation period", under sections of the Prevention of Money Laundering Act (PMLA).

The agency called Patel as the mastermind in this money laundering scam.

The (ED) said in a statement that it was found that cash to the tune of Rs 84.5 crore were deposited in the account of companies — M/s Pihu and M/s Satnam Jewels — post demonetisation.

"The said amount was deposited in cash within a short span of 41 days between November-December 2016. The said funds were subsequently transferred to the account of Bullions and further used towards purchase of 258 kg bullion," it said.

The ED said the account of was "already a declared non-performing asset (NPA) by the bank concerned".

"Preliminary investigation indicated that the said companies did not have matching economic wherewithal to have entered into such transactions in cash and subsequently layering the same through investments in bullion," it said.

The agency is probing the case under and it is expected to produce Patel in a special Mumbai court tomorrow.

The two currencies of Rs 500 and Rs 1000 were demonetised after a declaration by Prime Minister Narendra Modi on November 8.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, September 22 2017. 21:42 IST