Enforcement Directorate Cracks Down on Rs 10,000 Crore Remittance Fraud Network

In a major investigation, the Directorate of Enforcement has discovered a network of 98 dummy firms and 12 shell companies allegedly involved in illegal remittances of over Rs 10,000 crore to Hong Kong, Singapore, and Thailand disguised as freight charges using 269 fraudulent bank accounts.

The Directorate of Enforcement (ED) has revealed a massive illegal remittance scheme involving Rs 10,000 crore directed to Hong Kong, Singapore, and Thailand via fraudulent entities. This discovery involves 98 dummy firms and 12 shell companies, with transactions hidden as freight charges.

Officials uncovered these activities following extensive searches in Mumbai, Thane, and Varanasi. Investigations started after a First Information Report was filed by Thane Police against Jitendra Pandey, leading to the arrest of several individuals by the Economic Offences Wing. The illicit transactions were facilitated through 269 bank accounts linked to these shell entities.

The ED's operation exposed a network of RTGS entry operators and identified the involvement of several chartered accountants in setting up these companies and ensuring compliance with regulations. Assets worth Rs 1 crore have been seized, and further analysis of documents and digital devices is ongoing.

(With inputs from agencies.)