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The Enforcement Directorate (ED) on Thursday said that it has attached black money to the tune of Rs 9,000 crore post demonetisation and also registered over 3,500 cases under FEMA and money laundering charges.
In a statement, the financial probe agency said between November 2016 and September 2017, the ED has conducted raids at over 266 places in cases related to the Foreign Exchange Money Act (FEMA) and at 354 places in cases under the Prevention of Money Laundering Act (PMLA).
The agency also said that it has registered over 3,567 cases under FEMA and 191 cases under PMLA in the last one year.
The agency in the last one year also issued over 700 show cause notices and arrested 54 people.
During its investigation, the ED said it found that proceeds of the crime were laundered mainly through financial institutions using shell companies and real estate.
"It is worth mentioning that even in real estate sector the money for investments has been coming through financial institutions using maze of shell companies.
Therefore shell companies are major modus operandi through which which money is laundered."
The agency, in its report, said that during demonetisation beside shell companies there was connivance of bank officials in converting the old currency into new.
Similarly a lot of investment was made in gold and the real estate sector with the illegal money and therefore the Directorate's focus was on shell companies, gold dealers and banks post demonetisation.
The several modus operandi used to convert old currency into new included using corrupt means and bribing bank officials, hiring services of professionals like Chartered Accountants, investment in gold bullion and jewellery, hawala investment in foreign currency and investment in real estate.
Prime Minister Narendra Modi had announced scrapping of Rs 500 and Rs 1,000 notes on November 8, 2016 to curb "black money and corruption".
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