The Enforcement Directorate has searched seven premises in Delhi and Kolkata while investigating an alleged ₹1,500-crore money laundering network linked to Visakhapatnam. Officials reported seizing ₹47 lakh in cash, foreign currencies and documents. The investigation concerns suspected transfers abroad through shell companies using forged invoices for software imports. The ED has previously linked Vaddi Mahesh and Bhimendra Kumar Goyal to the alleged network, with overseas transactions routed through entities in Singapore, Hong Kong and China. The allegations remain subject to legal proceedings.
ED Uncovers Alleged Rs 1,500-Crore Money Laundering Network Linked to Visakhapatnam
The Enforcement Directorate conducted searches at seven locations in Delhi and Kolkata. Unaccounted cash, foreign currencies, and documents were found during the investigation.
The Directorate of Enforcement (ED) has busted an alleged Rs 1,500 crore money laundering racket involving shell companies, forged documents, and illegal overseas fund transfers disguised as payments for software imports in the Visakhapatnam region.
The searches were conducted at seven premises in Delhi and Kolkata by the Visakhapatnam Sub-Zonal Office of the ED under the Prevention of Money Laundering Act (PMLA), 2002. Officials seized Rs 47 lakh in unaccounted cash, USD 5,900, AED 2,200 and RMB/CNY 5,600, and important documents.
ED Investigation Traces Shell Companies and Forged Invoices
An FIR was registered at the MVP Police Station in Visakhapatnam under various sections of the Indian Penal Code (IPC), and the investigation was launched. The case was filed on a complaint by the Income Tax Department against Vaddi Mahesh and others.
The ED said the accused are alleged to have hatched a conspiracy to create forged documents and to send money abroad through banking channels. Reportedly, Vaddi Mahesh, along with his father and associates, established multiple firms with registered offices in Kolkata and bank accounts in their names.
Investigators found that Rs 569.03 crore was routed through these accounts to five companies in Singapore, Hong Kong and China. The payments were allegedly disguised as purchases of customised software, but the invoices presented to banks were fake. No software was really imported against these remittances.
Bhimendra Kumar Goyal's Alleged Role in Overseas Transfers
Further investigation led to the identification of Bhimendra Kumar Goyal, who allegedly contacted Vaddi Mahesh through associates to facilitate payments to overseas suppliers and launder proceeds of smuggling activities.
Goyal smuggled cosmetics, electronic goods and textile fabrics into India to evade customs duties, according to reports. He has also been arrested three times under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA).
Vaddi Mahesh allegedly received money through shell company accounts between 2014 and 2017 and sent it abroad on Goyal’s instructions. The money was routed through shell companies in Singapore and Hong Kong with nominee directors before it reached accounts linked to Goyal and businesses linked to his family members.
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Fictitious Firms and Singapore Company Under Scrutiny
The ED also found that Goyal, with the alleged help of Pawan Kumar Ralli, ran fake firms from New Delhi. These included M/s Mehak Overseas, M/s Karan Overseas, M/s Geet Enterprisers.
Some of the suspected proceeds were routed through M/s Village Handicraft Export before reaching M/s Eagle Mount Trading Pte Ltd in Singapore, owned by Ashish Todi, it said.
ED Continues Probe Into Rs 1,500-Crore Network
The Visakhapatnam money laundering racket had elements of suspected cross-border transactions, fabricated commercial invoices and multiple shell companies in different jurisdictions.
The ED has provisionally identified the proceeds of crime at Rs 1,500 crore. Further investigations are ongoing to trace the entire money flow and other persons and entities possibly linked with the alleged network.
We’ll keep you updated on the investigation as it unfolds, via Sprouts News.
