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Hawala case: ED seizes assets of Delhi minister Kailash Gahlot's brother

Premises linked to the family and associates of Kailash Gahlot were raided by the I-T Department in October last year

Press Trust of India  |  New Delhi 

Enforcement directorate
The agency said it issued a seizure order under section 37A of FEMA freezing the flat and a land in Chauba village in Haryana in lieu of alleged illegal assets held abroad

The ED has seized a flat in posh area of and a land in worth Rs 1.48 crore in connection with a FEMA and hawala case against Harish Gahlot, brother of

The agency said it issued a seizure order under section 37A of FEMA freezing the flat and a land in Chauba village in in lieu of alleged illegal assets held abroad.

"Investigation was initiated under FEMA (Foreign Exchange Management Act) based on the information received from the informing about transfer of money to the tune of Rs. 1 crore from to through hawala channel by through a Delhi-based for making advance payments toward purchase of two flats in in September, 2018," the ED alleged in a statement.

Premises linked to the family and associates of Kailash Gahlot, (AAP) MLA and Transport minister, were raided by the in October last year. The properties of his brother were also searched during this action.

The tax department searches were conducted as part of a tax evasion probe against two firms -- and and -- that are reportedly operated and owned by the family members of

had denied any wrongdoing and the AAP had called the action "political vendetta."

The (ED) said its probe revealed that in September, 2018 had given Rs 1 crore cash to his younger son Nitesh Gahlot, who is an NRI and studying in Dubai, for sending this money to allegedly through unauthorised hawala channel, that denotes skirting to transfer money.

"Nitesh Gahlot, through his contact, approached Inderpal Wadhawan, a Delhi-based for transferring the amount. Wadhawan kept Rs 4 lakh with him as commission and illegally delivered Dirhams equivalent to Rs 96 lakh in Dubai which was collected by the friend of and deposited the said amount in the Dubai account of Nitesh Gahlot," the agency charged.

Out of these funds, the ED said, made payment to Dubai-based developers for booking of two flats in the name of himself, his father Harish Gahlot, his mother and his elder brother.

"Investigation also revealed that on September 26, 2018 Harish Gahlot had sent Rs 50 lakh from his in to the account of his son maintained in Dubai under the Liberalised Remittance Scheme (LRS) for the purpose code for Education Including Fees Hostel Expenses etc, the ED said.

However, the agency said, the said amount was "not used for intended purpose but actually used for booking of said two flats in Dubai.

First Published: Tue, May 07 2019. 14:10 IST
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