Enforcement Directorate attaches assets worth Rs 7 crores of Chennai based jewellery merchant in bogus import case

New Delhi: The Enforcement Directorate (ED) on Thursday (August 6) attached immovable properties worth Rs 7 crores of a Chennai based bullion trader and jewellery merchant Anantha Padmanaban, under Prevention of Money Laundering Act (PMLA), in a bogus import case, according to an official statement. The bogus import case involved Afroz Fatta and M/s RA Distributors Pvt. Ltd. 

The attached assets comprise 9600 square feet of land along with commercial building including Basement, Stilt, Ground and 4 floors totalling to 20,292 Square feet situated at Thyagarayanagar, Chennai which is held in the name of M/s NAC Jewellers (P) Ltd of Anantha Padmanaban. 

The ED has now attached properties of Anantha Padmanaban comprising immovable property measuring 20,292 sqft worth Rs 7 crores located at North Usman Road, Thyagarayanagar, Chennai held in the name and possession of his company.

The probe under the PMLA was initiated on the basis of a complaint received by the Crime Branch, Surat from ICICI bank against RA Distributors and others alleging that the companies had prepared fake bills of entry and presented the same before ICICI Bank for illegal outward remittance in the guise of import. 

The ED investigation revealed that 9 companies having accounts in ICICI Bank, Surat remitted a huge amount of money on the basis of forged bills of entry to 3 companies in UAE and 15 companies in Hong Kong. The main sources of credits in these accounts were from 8 entities including M/s. Vandana & Co., M/s. Natural Trading Co., M/s. Maruti Tading, etc. having accounts in Axis bank along with 469 other entities. 

These 8 entities, having accounts in Axis Bank, had received funds through various cheque discounters and a web of around 2700 companies. 

Afroz Mohamed Hasanfatta, Madanlal Jain, Bilal Haroon Gilani, Jayesh Desai, Rakesh Kothari were involved in this racket. These accused created shell companies using dummy persons as directors/partners.

The investigation further revealed Madanlal Jain, the main conspirator had earned commission for his role in the illegal transactions of foreign remittances made on the strength of fake bills of entry. Part of the said commission so earned was routed to the bank account of M/s NAC Jewellers (P) Ltd, company controlled by Anantha Padmanaban to the tune of Rs 7 Crores. 

The probe also established that this transaction has been carried out by N Anantha Padmanaban with full knowledge that the money so received was tainted and further said the money was utilized in business furtherance of M/s NAC Jewellers (P) Ltd by him. 

In order to cover up these transactions, Madanlal Jain prepared bogus invoices of sale/purchase of diamonds between M/s NAC Jewellers and M/s Natural Trading Company to show as if diamonds were purchased from M/s NAC Jewellers by M/s Natural Trading Co, company controlled by Madanlal Jain.

Earlier, ED had arrested Afroz Mohamed Hasanfatta, Madanlal Jain, Manish Shah, Rakesh Kothari and Jayesh Desai and attached their properties worth Rs 34.29 Crores and filed five prosecution complaints before designated Special court. 

Meanwhile, the ED investigation is in progress.