Mumbai: Politicians, bankers under ED's lens in Rs 1500 crore diamond remittance case
The agency has got at least few names of politicians, based in New Delhi, who "may have direct links" with Ritesh Jain, a prime accused in the money laundering case.
In Short
- ED has got names of politicians, who "may have direct links" with Ritesh Jain, a prime accused in the money laundering case.
- Few public and private banks have also come under ED's scanner.
- Last year, the ED officials had conducted searches on Rajeshwar Exports.
The deeper the Enforcement Directorate (ED) is getting into the Rs 1500 crore outward remittance scam, more skeletons are tumbling out. The agency has got at least few names of politicians, based in New Delhi, who "may have direct links" with Ritesh Jain, a prime accused in the money laundering case. In addition, few public and private banks have also come under ED's scanner.
Last year, in the second week of December 2016, the ED officials had conducted searches on Rajeshwar Exports, a Mumbai-based diamond company with a business of import and export. Rajeshwar Exports, a shell company, was formed by Ritesh Jain, managing director of Auro Gold Jewellery Private Ltd.
After the initial searches, the agency found that Rajeshwar Exports had diverted around Rs 700 crore to Hong Kong in the month of November 2016, soon after the demonetisation process began. Later, the investigators got more specific details and some indiscriminating documents which revealed that the company had diverted about Rs 1421 crore, since December 2015 (in one year).
"While investigating the entire money trail, we found one transaction of around Rs 120 crore bit unusual. This transaction was done in demonetisation period. We suspect that the diverted money belongs to either a politician or a bureaucrat," a source, with a condition of anonymity, confirmed to India Today.
On December 27, 2016, India Today was first to reveal how black money in crores were flown to Hong Kong and Dubai. Two months back, the major questions in the mind of investigators were: whose money was put into the banking channel and who are the ultimate beneficiaries of this money outside India.
Is it a politician's money?
Sources told India Today that till now, "It has obtained names of at least 3-4 politicians who might have direct connection with this case." The source further added, "At present, the names of these politicians could not be shared. But these names are the public figures and belongs to the Opposition party i.e. Congress".
At present, the agency has not initiated any investigation against these names. "We have not sent any queries or communication to these names till now, but we may soon. Currently, the agency has become very cautious in its action plan. It all depends how decisions are taken at the top," the source said.
Banks under scanner
During the investigation, the agency found that Rajeshwar Exports and other shell companies had violated all the rules of special economic zone (SEZ) at Sachin, Surat in Gujarat. As per the remand application filed before the special PMLA Court in Mumbai, the ED had informed that accused shell companies had overvalued diamonds more than 10 times in its book of accounts.
Ritesh Jain and few others (mostly bogus directors) had opened almost 500 bank accounts in India for the illegal transactions. Sources said, "Strategically, the money was credited into a leading public sector bank, either in cash or by using bogus entry bills. Later, the money got diverted into accounts of other private banks. In last one year, the entire money of about Rs 1500 crore were diverted using four different banks in various layers".
The money trail shows that around 80 per cent of the transactions were handled by State Bank of India (SBI), the source said. Queries sent to SBI by India Today remain unanswered. Other banks which are under ED's scanner are: Axis Bank, HDFC Bank and Indusind Bank.
Past records of default
Ritesh Jain and his father Amritlal Jain own a leading jewellery company - Auro Gold Jewellery Private Limited in Mumbai with a turnover of Rs 3672 crore in 2013-14.
India Today accessed the company's data available with the Ministry of Corporate Affairs (MCA), which revealed 14 charges registered against Auro Gold with a debt amount of about Rs 680 crore against SBI, State Bank of Patiala, State Bank of Bikaner & Jaipur, Dhanlaxmi Bank Ltd, IDBI Bank and India Infoline Finance Ltd, in the period of 2002 to 2014. Interestingly, the major component of Rs 626 crore which remain unpaid belonged to SBI and its subsidiaries.
Incidentally, in year 2013, the Central Bureau of Investigation (CBI) had lodged a graft case against SBI's MD Shyamal Acharya. During the searches, the CBI officials had found four kilograms of gold in Acharya's personal lockers in Kolkata and Mumbai. Investigations further revealed that Acharya had allegedly invested an additional six kilograms of gold with jeweller Amritlal Jain, Chairman of Auro Gold.
Does that CBI case has anything to do in this money laundering case, it's too early to conclude, the source said. But meanwhile, the ED has arrested one Kritika Dahal (now in judicial custody), director of International Rising Ltd, based in Hong Kong - another shell company of Rajeshwar Exports and has issued a look out notice against Ritesh Jain, who is currently hiding in Gulf region.
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