Page 16 - Money Laundering

Credit card users in India may no longer be able to overpay their dues

The banks have put guards in their applications to prevent customers from overpaying their credit card dues

Delhi excise policy case: ED summons K Kavitha for questioning on Friday

The Enforcement Directorate has summoned BRS leader and the daughter of Telangana Chief Minister K Chandrashekar Rao, K Kavitha, at its Delhi office on Friday for questioning in connection with the excise policy case in the national capital, officials said. Kavitha was questioned several times at the ED headquarters in March and had to submit her mobile phones to the federal agency. It is alleged that the Delhi government's excise policy for 2021-22 to grant licences to liquor traders allowed cartelisation and favoured certain dealers who had paid bribes for it, a charge strongly refuted by the ruling Aam Aadmi Party (AAP) in the national capital. The policy was subsequently scrapped and the Delhi lieutenant governor had recommended a CBI probe, following which the ED registered a case under the Prevention of Money Laundering Act (PMLA). During its probe, the ED had recorded the statement of Butchibabu, an accountant allegedly linked to Kavitha, in which he had said "there was ...

Flying solo into trouble: The rise and fall of Jet Airways' Naresh Goyal

Goyal, who faces accusations of misappropriating Jet Airways' funds, is currently embroiled in a legal struggle with investigative agencies

Bhupesh Baghel's political advisor denies involvement in money laundering

Chhattisgarh Chief Minister Bhupesh Baghel's political advisor Vinod Verma on Thursday claimed he does not have a "single penny" of ill-gotten money, a day after the Enforcement Directorate conducted a search at his residence. Addressing a press conference here, Vinod Verma also said he has no connection with assistant sub-inspector (ASI) Chandrabhushan Verma, arrested along with three others by the ED on Wednesday in a money laundering case linked to the alleged illegal betting app called 'Mahadev Online Book'. Alleged hawala operator brothers Anil and Sunil Dammani and a man identified as Satish Chandrakar are the three others arrested in the case. According to the ED, the probe has found that around Rs 65 crore cash was received by ASI Chandrabhushan Verma. He kept his cut and distributed the rest as bribes to senior police officers and politicians, it claimed. The ED on Wednesday conducted searches at the premises of Vinod Verma, who is also a member of the All India Congress .

ED freezes Rs 28 lakh deposits of Kerala CPI(M) MLA Moideen, wife

The ED on Wednesday said it has frozen bank and fixed deposits worth Rs 28 lakh of Kerala CPI(M) MLA A C Moideen and his wife, a day after conducting searches against him and others in a money laundering case. The case is linked to the alleged Rs 150 crore fraud in the party-controlled Karuvannur cooperative bank. The searches, launched at five locations across Kerala on Tuesday, have also led to the "seizure of 36 properties valued at Rs 15 crore, being proceeds of crime", it said in a statement. The Enforcement Directorate (ED) said the raids were conducted to probe "benamis and beneficiaries who siphoned off bank funds of more than Rs 150 crore from Karuvannur Service Cooperative Bank Ltd". Two orders were issued for freezing bank deposits and fixed deposits worth Rs 28 lakh found to be in the "possession of" A C Moideen and his wife, the ED said. It said the probe has found that "on the instructions of certain persons, who were district-level leaders and committee members of .

PayPal moves HC against order holding it as payment system operator

American online payment gateway PayPal on Wednesday moved the Delhi High Court against an order which ruled that it was a "payment system operator" under the Prevention of Money Laundering Act (PMLA) and has to thus comply with "reporting obligations" under it. Senior counsel appearing for PayPal argued before a bench headed by Chief Justice Satish Chandra Sharma that the order passed by a single judge of the high court was wrong. Senior advocate Mukul Rohatgi, appearing for the appellant, also said that the single judge's order cannot be sustained in view of a recent decision of the high court on the issue of payment system operator. The bench, also comprising Justice Sanjeev Narula, listed the appeal for further hearing in September. On July 24, the single judge had set aside a penalty of Rs 96 lakh imposed on PayPal by Financial Intelligence Unit (FIU) -- India for alleged non-compliance with the "reporting obligations" under the law against money laundering. It had also ruled

Sebi amends rules; enhances disclosure requirements for certain FPIs

To ensure greater transparency, Sebi has mandated enhanced disclosures for a certain class of Foreign Portfolio Investors (FPIs), including furnishing details about ownership and economic interests. In addition, the regulator has tweaked rules pertaining to the eligibility criteria for FPIs. "A foreign portfolio investor that fulfils the criteria specified by the board from time to time shall provide information or documents in relation to the persons with any ownership, economic interest or control, in the foreign portfolio investor," Sebi said in a notification amending the rules on Thursday. The information or documents will be provided in the manner specified by the Securities and Exchange Board of India (Sebi). Further, applicants with investors contributing 25 per cent or more in the corpus that are mentioned in the Sanctions List by United Nations (UN) Security Council are ineligible for registration as FPIs, the regulator had said in June. The Prevention of Money Launderin

Excise scam: HC grants bail to Raghav Magunta in money laundering case

The Delhi High Court has granted bail to Raghav Magunta, son of YSR Congress Party MP, in connection with a money laundering case related to the alleged excise scam. Justice Dinesh Kumar Sharma, who had earlier granted interim bail to the son of MP Magunta Srinivasulu Reddy, recorded that the relief was granted as the Enforcement Directorate did not oppose his bail plea. The ED, in its reply, submitted that since the accused is cooperating in the investigation and assisting in tracing the Proceeds of Crime, which would have been otherwise difficult, he may be granted bail. In view of the statement made and the facts narrated herein above, the interim bail granted vide order dated 18.07.2023 for four weeks on medical grounds is made absolute, said the court in an order dated August 10. Let the petitioner be released on regular bail furnishing a personal bond of Rs. 2,00,000 with two sureties of like amount to the satisfaction of the learned trial court , the court said. The court a

ED takes possession of villas, land in money laundering case against PFI

The Enforcement Directorate has taken possession of four villas and 6.75 acres of land in Kerala's Munnar district as part of a money laundering investigation against the banned Popular Front of India. The assets are worth a total Rs 2.53 crore (book value) and belong to Munnar Villa Vista Pvt Ltd. They were provisionally attached by the federal probe agency on January 7 and the adjudicating authority of the Prevention of Money Laundering Act (PMLA) confirmed it on June 30, the ED said in a statement on Saturday. The order of the adjudicating authority paved way for the agency to take possession of the land and the four villas, it said. The Popular Front of India (PFI) was banned under provisions of the Unlawful Activities Prevention Act (UAPA) in September last year over its alleged links with terror activities. The Enforcement Directorate (ED) said PFI leaders and members associated with overseas entities were developing a residential project -- Munnar Villa Vista Project (MVVP)

ED conducts searches in Delhi Jal Board linked money laundering case

The Enforcement Directorate (ED) has conducted searches in a money laundering case linked to alleged irregularities and siphoning of funds of the Delhi Jal Board (DJB), official sources said on Tuesday. The raids were carried out in the national capital on Monday at about 10 premises as part of the investigation being carried out under the provisions of the Prevention of Money Laundering Act (PMLA). The agency has collected some documents and records, the sources said. The ED probe is stated to be based on a November, 2022 FIR of the Delhi government's anti-corruption branch (ACB) for alleged embezzlement of Rs 20 crore funds from the DJB.

Like-minded parties united against Modi govt's 'vendetta politics': Kharge

Condemning the Enforcement Directorate raids at multiple premises of DMK leader K Ponmudy, Congress president Mallikarjun Kharge on Monday said all like-minded parties are united against the "vendetta politics" of the Modi government and shall not be bogged down by these "cowardly tactics to trample upon democracy". The Enforcement Directorate (ED) on Monday conducted raids at multiple premises of Tamil Nadu Higher Education Minister Ponmudy and his MP son Gautham Sigamani Pon in a money laundering case linked to alleged illegal mining, official sources said. Escorted by armed personnel of the CRPF, the officials of the federal probe agency searched the premises under the provisions of the Prevention of Money Laundering Act (PMLA). In a tweet, Kharge said, "We condemn the ED raids against Tamil Nadu Education Minister, Dr. K. Ponmudy, just before our crucial opposition meeting." This has become Modi government's predictable script in order to intimidate and divide the opposition, h

CoinDCX collaborates with Jocata over anti-money laundering processes

The partnership with Jocata will enable CoinDCX to further augment its AML framework to navigate through the developing regulatory landscape

Ministers concerned over including GST IT network in money laundering act

India's state ministers have raised concerns over the inclusion of goods and services tax's (GST) information technology network under the country's money laundering act

ED files draft charges against NCP leader Malik; next hearing on July 24

The Enforcement Directorate (ED) on Monday submitted draft charges in a court here against former Maharashtra minister and NCP leader Nawab Malik in a money laundering case linked to the activities of fugitive underworld don Dawood Ibrahim and his aides. Special public prosecutor Sunil Gonsalves filed the draft charges before special judge R N Rokade. Besides Malik, who is in jail, draft charges were filed against three other accused in the case and the matter was adjourned for hearing on July 24. Draft charges are a step towards commencing trial in a criminal case. The court concerned has to hear both sides and decide which of the sections invoked by the investigating agency the accused can be charged with based on prima facie evidence. The court will then read out to the accused the charges he will face during the trial, and once he pleads not guilty, the trial can commence. Malik has sought bail from the Bombay High Court and his plea has been reserved for order. The ...

SC extends Satyendar Jain's bail till July 24 in money laundering case

The Supreme Court on Monday extended till July 24 the interim bail granted to former Delhi minister Satyendar Jain on medical grounds in a money laundering case being probed by the Enforcement Directorate. A bench of justices A S Bopanna and M M Sundresh directed senior advocate Abhishek Singhvi, appearing for Jain, to submit the medical reports to Additional Solicitor General S V Raju. During the brief hearing, Singhvi submitted that three hospitals have recommended surgery for Jain. The top court on May 26 had granted interim bail to Jain for six weeks on medical grounds, saying a citizen has a right to receive treatment of his choice in a private hospital at his own expense. The ED had arrested Jain on May 30 last year on the charge of laundering money through four companies allegedly linked to him. The agency had arrested Jain in the aftermath of a CBI FIR registered against him in 2017 under the Prevention of Corruption Act. He was granted regular bail by the trial court on

Govt allows ED to share data with GSTN, move to help recovery of GST

The government has amended provisions of the money laundering Act to allow enforcement directorate (ED) to share information with GST Network. The move would help recovery of Goods and Services Tax (GST) evaded through money laundering. GSTN handles the technology backbone of the indirect tax regime and is the repository of all GST-related information, including return, tax filing and other compliances. As per the amendment to the provisions of Prevention of Money Laundering Act (PMLA), 2002, GSTN has been included in the list of entities with which ED will share information. AMRG & Associates Senior Partner Rajat Mohan said notifying GSTN under PMLA would enable a legal framework under which high-value tax offenders can be traced, apprehended made liable to pay due taxes. GSTN can pass on relevant information on probable tax offenders to jurisdictional officers so as to initiate proceeding under GST law for scrutiny, adjudication and recovery of taxes, Mohan added. Nangia ...

Excise policy scam: Delhi HC set to pronounce order on Sisodia's bail plea

The Delhi High Court is scheduled to pass on Monday an order on the bail plea of AAP leader Manish Sisodia, arrested for his alleged role in the money laundering case relating to alleged irregularities in the city government's excise policy. As per a cause list uploaded on the court's website this morning, Justice Dinesh Kumar Sharma will pronounce the order on Sisodia's bail plea at 2:30 PM. Besides Sisodia, the high court will also pass orders on the bail pleas of businessmen Abhishek Boinpally, Benoy Babu and Vijay Nair, who are co-accused in the money laundering case lodged by the Enforcement Directorate (ED) arising from the alleged scam. Sisodia, former Delhi deputy chief minister and excise minister, was first arrested by the CBI on February 26 for his alleged role in the scam and has been in custody since then. The high court has already denied him bail in the CBI case on May 30. He was arrested on March 9 in the case lodged by the ED and is currently in judicial custody.

ED arrests Supertech's chairman R K Arora in money-laundering case

The Enforcement Directorate (ED) arrested real estate company Supertech's chairman and owner R K Arora on money-laundering charges on Tuesday, official sources said. Arora was taken into custody under the criminal sections of the Prevention of Money Laundering Act (PMLA), following a third round of his questioning at the federal agency's office here, they said. He is expected to be produced before a special PMLA court here on Wednesday, where the ED will seek his further remand. The money-laundering case against the Supertech group, its directors and promoters stems from a clutch of FIRs registered by the police departments in Delhi, Haryana and Uttar Pradesh. In April, the ED had attached assets worth more than Rs 40 crore of the real estate group and its directors.

Sebi asks bourses to identify money laundering risks from new product

Sebi on Friday asked the stock exchanges and market intermediaries to identify and assess the money laundering and terror financing risks that may arise from the development of new products and new business practices. In addition, they have been directed to undertake such risk assessments before the launch or use of such products, practices, services and technologies, Sebi said in its updated guidelines on anti-money laundering standards and combating the financing of terrorism obligations of securities market intermediaries. The development comes after the government amended the Prevention of Money Laundering (Maintenance of Records) Rules or PMLA rules in March. In its guidelines, Sebi said that every intermediary will have to register the details of a client, in case of the client is a non-profit organisation, on the DARPAN portal of Niti Aayog and maintain the records for five years after the business relationship between a client and the intermediary has ended or the account ha

Govt plans to ask lawyers to report clients' dubious transactions

The authorities believe the plan will help in faster recognition of dubious transactions involving shell companies and money laundering