Haryana Police dismantles Rs 700-cr money laundering network involving fake firms

The State Crime Branch of Haryana Police has dismantled a major organized crime network involved in transferring black money abroad through fake companies. The investigation revealed that the suspect had illegally diverted around Rs 700 crore to foreign bank accounts disguised as business transactions. So far, seven people have been arrested and charges have been filed in court against five additional suspects.

On March 18, 2024, the police received a first complaint about suspicious financial transactions. Director General of Police (DGP) Shatrujeet Kapur acted quickly and directed the formation of a Special Investigation Team (SIT) headed by Additional Director General of Police, State Crime Branch, and Deputy Commissioner of Police, Gurugram, Nitish Aggarwal. During the investigation, it emerged that the suspects systematically set up fake companies under the names of ‘dummy directors’ to carry out these illegal transactions.

The fake directors opened bank accounts with the help of certain bank officials who enabled them to complete e-KYC formalities while the accused retained full control over these accounts, including access to ATMs, internet banking credentials and registered mobile SIM cards. Through these companies, which were wrongly registered in the names of dummies, they carried out imports and exports through the ports of Gujarat and Mumbai, claiming transactions with foreign entities. By artificially inflating invoice prices, they were able to transfer significant sums of money abroad, benefiting from high commissions for every illegally transferred dollar.

The gang allegedly carried out money transfers by demonstrating fictitious sales and purchases. A substantial portion of these transactions involved converting rupees into dollars, which were then deposited into the accounts of foreign companies. In a more elaborate ruse, the suspects even rented goods from foreign companies, falsely documented them as purchases, and later re-exported them, often without receiving any payment, as evidenced by the paperwork.

To evade detection, the suspects maintained separate addresses, bank details and import-export documentation for each company, making it difficult for authorities like Directorate of Revenue Intelligence (DRI), Customs, Enforcement Directorate (ED) and Central GST to to trace the company. the inconsistencies.

Among those arrested, three are residents of Delhi, while others are from Dehradun, Jhajjar, Sonepat and Faridabad. The SIT has already filed a complaint against five suspects. During the raids, police seized a large quantity of forged documents, around 26 mobile phones, laptops, company stamps and other incriminating materials. Cases of murder and serious damage have previously been filed against one of the detainees.

The SIT of Haryana Police is investigating the case under the supervision of senior officials, with an aim to completely dismantle this network and prevent future illegal financial operations.