ED conducts multi-city searches at 11 premises of a Hawala operator

The search was conducted on Sept 17 and a preliminary enquiry revealed that the Hawala transactions are being carried by one of his Indian company M/s Radhika Gems Pvt Ltd by collecting money in India

The Enforcement Directorate (ED) has conducted searches at 11 premises in New Delhi and Mumbai to unearth international Hawala racket of more than Rs 700 crore related with Dubai based Hawala operator, Pankaj Kapur and his associates under the provisions of Foreign Exchange Management Act (FEMA), 1999.

The search was conducted on September 17 and a preliminary enquiry revealed that the Hawala transactions are being carried by one of his Indian company M/s Radhika Gems Pvt Ltd by collecting money in cash in India and transferring the same to the companies abroad against the payment of import of diamonds. These overseas companies are preliminarily found to be owned and controlled by Pankaj Kapur only.

Searches have also been conducted at the offices of two chartered accountants and one Custom House Agent (CHA) who helped Kapur in creating a web of shell firms, managing the books of accounts and filing import documents with the Customs Authority.

Kapur has used these firms, which are more than 50 in numbers, to channelise the money collected in cash from various persons in India and transferring the same aboard. The ED is also investigating Kapur in another case where evidence is found for his involvement in Hawala transaction of more than Rs 37 billion.

During the search, cash to the tune of Rs 29.19 lakhs and incriminating documents and items which includes electronic gadgets, diaries having the record of Hawala transactions, STAMP of more than 150 shell firms are found and seized. Further investigation in the case is underway.