Katni hawala case: ED files prosecution complaint against four accused

  • | Wednesday | 11th July, 2018

Its probe revealed link between the accounts involved in the scheduled offence and the final beneficiary of the proceeds of crime. He had come to know of the transactions only after receiving a notice from the income tax (I-T) department.The ED has been investigating the money laundering aspect of the case. Further investigation is on the case. The assets were identified as proceeds of crime and attached vide one provisional attachment order, which was duly confirmed by the competent authority.The ED has now, therefore, filed a prosecution complaint, which is equivalent to a chargesheet, under Section 45 of PMLA against M/s Nirnidhi Marketing Private Limited, Satish and Manish Saraogi and Manvendra Mistry. INDORE: Enforcement Directorate ED ) has filed prosecution complaint of 861 pages against Saraogi brothers, Manvendra Mistry and M/s Nirnidhi Marketing Private Limited before a special court in Jabalpur under Prevention of Money laundering Act (PMLA).“Kotwali police station in Katni district had registered four FIRs under Section 420, 467, 468 & 471 of (IPC) alleging that high value transactions had taken place from Axis Bank accounts opened in the name of complainants without their knowledge.

INDORE: Enforcement Directorate ED ) has filed prosecution complaint of 861 pages against Saraogi brothers, Manvendra Mistry and M/s Nirnidhi Marketing Private Limited before a special court in Jabalpur under Prevention of Money laundering Act (PMLA).“Kotwali police station in Katni district had registered four FIRs under Section 420, 467, 468 & 471 of (IPC) alleging that high value transactions had taken place from Axis Bank accounts opened in the name of complainants without their knowledge. Subsequently, Katni police filed chargesheet against Satish Saraogi, Manvendra Mistry and others, alleging their active role in fraudulently opening the said bank accounts and resulting in transactions worth crores,” a press release issued by ED on Tuesday reads.The sensational Rs 500 cr hawala scam in Katni had surfaced following a complaint from a farmer claiming that unidentified people made transactions of Rs 90 lakh from a Jan Dhan saving account opened in his name at an Axis Bank branch in Katni district. He had come to know of the transactions only after receiving a notice from the income tax (I-T) department.The ED has been investigating the money laundering aspect of the case. Its probe revealed link between the accounts involved in the scheduled offence and the final beneficiary of the proceeds of crime. ED has learnt that the Saraogi family and M/s Nirnidhi Marketing Pvt Ltd are the final beneficiary of the proceeds of crime.It also establishes the fact the fictitious accounts were created for placing the illegal cash into banking system and then finally integrating it into beneficiary companies by layering through several paper/front companies or firms without any underlying business transaction. This was done just to route the illegal money into the beneficiary companies by creating a web of financial transactions and hiding its criminal origin.“These proceeds of crime are then projected as untainted and utilised in the regular course of business or for purchase of properties/assets,” the release mentions.The investigation has also revealed that in addition to this modus operandi of money laundering, the accused especially Manish and Satish Saraogi, have also used these firms and bank accounts for sale of illegal/diverted subsidized coal obtained from SECL into open market for personal gains.During investigation, it was also found that huge amount has been laundered through three accounts of firms- M/s Mahadev Trading and M/s SK Minerals- opened fraudulently and finally integrated into the account of M/s Nirnidhi Marketing Pvt Ltd controlled by Satish.The money was used to purchase immovable property worth Rs 2.65 crore at Katni and Panna in Madhya Pradesh and Raipur in Chhattisgarh. The assets were identified as proceeds of crime and attached vide one provisional attachment order, which was duly confirmed by the competent authority.The ED has now, therefore, filed a prosecution complaint, which is equivalent to a chargesheet, under Section 45 of PMLA against M/s Nirnidhi Marketing Private Limited, Satish and Manish Saraogi and Manvendra Mistry. Further investigation is on the case.

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