Massive Cash Seizure of Rs. 13.5 Crore Unveils High-Stakes Money Laundering Scheme in Maharashtra, ED Strikes With Fresh Operations
(Judicial Quest News Network)
In a major crackdown, the Directorate of Enforcement (ED), Mumbai Zonal Office, has conducted coordinated search operations at seven locations in Ahmedabad and Mumbai on December 6, 2024. The operations, targeting a network involved in large-scale money laundering, led to the seizure of a staggering Rs. 13.5 crore in illicit cash, marking a significant development in the investigation of the “Nashik Merchant Co-operative Bank” (NAMCO Bank) case, which centers on a complex financial fraud originating in Malegaon, Maharashtra.
The case emerged following the registration of an FIR (No. 295/2024) on November 7, 2024, by the Malegaon Chawani Police Station in Nashik. The FIR flagged suspicious deposits totaling over Rs. 100 crore, made into 14 newly opened accounts at NAMCO Bank. These accounts were used by the accused, identified as Siraj Ahmed Mohammad Harun Memon and his associates, who allegedly obtained identity documents of unsuspecting individuals through false promises and monetary incentives. These documents were then used to layer and transfer the proceeds of crime (POC).
As part of the investigation, ED officials uncovered additional irregularities, including the discovery of five similar fraudulent accounts maintained at the Bank of Maharashtra’s Nashik branch. Analyzing the transactions across these accounts, investigators found that substantial amounts were transferred through a series of debit transactions, mostly facilitated via online banking platforms.
Further investigation revealed that the majority of these funds were routed to 21 sole proprietary concerns, and a detailed analysis of their bank statements showed the receipt of hundreds of crores. The money was primarily transferred through online banking channels and later withdrawn in large cash sums from these accounts. The funds were then distributed to various firms and entities, some of which were allegedly set up as dummy companies to launder the proceeds.
In a shocking turn, the ED’s probe identified two key individuals, Nagani Akram Mohammad Shafi and Vasim Valimohmad Bhesaniya, who played pivotal roles in withdrawing vast amounts of cash from these accounts. They were instrumental in distributing the illicit funds to a network of angadiyas and hawala operators based in Ahmedabad, Mumbai, and Surat. These operators are believed to have funneled the money through informal channels, further obscuring the illicit financial flow.
The two accused, Shafi and Bhesaniya, were arrested under Section 19 of the Prevention of Money Laundering Act (PMLA) in connection with their role in facilitating this elaborate money laundering operation. Their arrest follows earlier ED raids conducted in November 2024, which targeted approximately 25 premises across Mumbai, Surat, Ahmedabad, and Nashik. These searches led to the seizure of a large number of incriminating documents, digital evidence, fixed deposits, and bank balances amounting to Rs. 5.2 crore.
The ongoing investigation has shed light on the extensive and well-organized nature of this money laundering syndicate, with authorities now focusing on dismantling the entire operation. The seizure of the Rs. 13.5 crore in cash has significantly advanced the case, and the ED is continuing its efforts to track down all the individuals and entities involved in this sprawling financial scam.
