ED uncovers Rs 10,000 crore remittance scam through shell firms

The Enforcement Directorate (ED) has unearthed a Rs 10,000 crore illegal remittance racket involving 98 dummy partnership firms and 12 private limited companies.

Funds were funnelled to entities in Hong Kong, Singapore, and Thailand under the pretext of freight charges, revealing a sophisticated financial fraud network.

The investigation, based on an FIR filed by the Thane Police against Jitendra Pandey and others, exposed the use of 269 bank accounts linked to shell entities. The accused allegedly layered transactions to disguise the origin of funds before remitting them abroad. 

Search operations conducted on January 2 in Mumbai, Thane, and Varanasi under the Prevention of Money Laundering Act (PMLA) led to the seizure of cash, jewellery worth Rs 1 crore, digital devices, and incriminating property documents.

The ED also uncovered the involvement of RTGS operators and chartered accountants who aided in setting up the firms, regulatory filings, and financial compliance.