ED cracks down on bogus companies involved in illegal transfer of cash

Enforcement Directorate (ED) officials on Friday night carried out raids at the offices of four bogus companies in Zaveri Bazaar that were allegedly involved in transferring money into the accounts of bullion traders for the purpose of buying gold. It is suspected that these money transfers were an attempt to convert black money into white illegally.

ED sources say an undisclosed amount of Rs 69 crore had been transferred to the accounts of bullion traders from these companies. According to ED sources, raids were conducted on the basis of information received by the agency that black money was being laundered, and that a huge sum had been sent to four bullion traders in Zaveri Bazaar.

"A cash deposit of Rs 69 crore was made via RTGS through few bogus companies in the accounts of four companies belonging to bullion traders. The accounts of the four companies were searched. All of them are companies of Zaveri Bazaar-based bullion traders. We have frozen one account which had Rs 1.2 crore in it. A probe has revealed that the remaining money has already been moved for the purpose of buying gold and silver illegally. We are tracking details pertaining to the shell companies and bullion traders," said an ED official on the condition of anonymity. He added that the amount of money transferred could be much more than what has surfaced till now.