ED arrests International Hawala operator Naresh Jain, secures his 9-day custodial remand

New Delhi: The Enforcement Directorate (ED) has arrested an International Hawala Operator Naresh Jain under the provision of the Prevention of Money Laundering Act (PMLA) 2002 and secured nine days custodial remand from Rohini (North-West) court of Delhi. 

The ED arrested Naresh Jain in connection with the ongoing PMLA investigation into his role in money laundering and international Hawala transactions.

On the basis of an FIR registered by the Economic Offence Wing of Delhi Police, the ED initiated Investigation under the provision of PMLA against Naresh Jain and others under Section 419, 420, 467, 468, 471, 120 B of IPC. 

The investigation conducted so far has revealed that Naresh Jain along with his accomplices hatched a criminal conspiracy to forge/fabricate documents in order to cause loss to the government exchequer by indulging in illegal foreign exchange transactions. 

According to the ED statement, documents like identity proof, birth and education certificates, voter IDs, PAN cards and signatures were forged/ fabricated to incorporate entities, operating bank accounts, facilitating bogus/ over-invoiced/ under-invoiced import and export transactions and rotation of the funds through web of shell companies to cause undue benefit to the parties involved and loss to the government exchequer. 

Naresh Jain is alleged to have facilitated parking of funds abroad by Indian nationals through his international Hawala transaction structure created in India and in various other jurisdictions. The probe has revealed that Jain has done Hawala operation of Rs 11,800 crore (approx.) in 114 foreign bank accounts.

During the investigation conducted so far, it has been revealed that 450 shell companies have been used to rotate funds to the tune of Rs 96,000 crore (appox.) for providing accommodation entries of approx. Rs 18,680 crore to more than 970 beneficiaries. 

Jain was brought to the Enforcement Directorate office for custodial interrogation.