Diamond trader Afroz Fatta arrested by ED in hawala racket

After playing hide and seek with the Enforcement Directorate (ED) for two months, Surat-based diamond trader Afroz Fatta was today arrested by the agency for his alleged involvement in a Rs 700-crore hawala racket.
ED had issued summons to Fatta, asking him to appear for questioning here. After almost five hours of grilling, agency officials put him under arrest this evening and initiated the process to seek his remand from the local court, where he is likely to be produced tomorrow, ED sources said.
The diamond trader had earlier ignored two summons sent by ED and allegedly gone underground to evade arrest.

Fatta hit headlines during Lok Sabha poll campaign in Gujarat when Congress leaders released a photo in which he was seen sharing stage with Prime Minister-designate Narendra Modi.
Congress had alleged that Fatta enjoyed "blessings" of BJP leaders in the state. However, BJP refuted the allegations and claimed anyone can get himself photographed with public figures at events.
On March 21, the central agency had claimed to have unearthed a hawala racket (illegal fund transfer network) of Rs 700 crore allegedly run by Fatta and another Surat-based trader Sundarlal Jain, who is still absconding.

During its probe, ED found that Fatta and Jain opened several firms on paper and transferred Rs 700 crore out of India by producing fake bills of entry into local banks.

Subsequent investigation revealed the amount moved out of India by the duo may be around Rs 5,000 crore.
Fatta recently moved the Gujarat High Court seeking quashing of the ED's complaint against him but failed to get any relief.
ED is expected to seek his custody from court to find out his alleged links with underworld and also whereabouts of Jain as well as others involved in the racket.