NEW DELHI, March 3 (PTI): The Enforcement Directorate (ED) Friday said it has arrested three people and seized Rs 25 lakh in cash and diamonds and gold worth Rs 10 crore, after it searched a few companies based in Gujarat as part of a money laundering probe against a “Chinese-controlled” money lending app.
The federal agency said 14 premises of Sagar Diamonds Limited, RHC Global Exports Limited, their director Vaibhav Dipak Shah and their associates located in Surat SEZ (special economic zone), Ahmedabad and Mumbai were searched.
The investigation pertains to a criminal case, filed under the Prevention of Money Laundering Act, against Power Bank app (mobile application) which is alleged to have duped “thousands of common people”.
The ED said this money lending app was “managed by Chinese nationals in connivance with their associates in India including Vaibhav Dipak Shah and Sagar Diamond Ltd.”
The proceeds of crime of the alleged fraud perpetrated by the app was “possessed” by Sagar Diamonds, a BSE-listed company, and others, it claimed.
“A number of manufacturing units of the entities at Surat SEZ were found involved in exorbitant overvaluation of import/export of diamond, gem stones and other precious metals and siphoning of funds abroad in the garb of bogus imports.”
“During the search, stock worth thousands of crore was shown in the books of account and it was found to be highly over-valued and having actual value of about Rs 10 crore,” it said.
Synthetic ruby of insignificant value was shown as precious gem, the agency said.
It said Rs 25 lakh in cash, gold, diamond and other valuables amounting to Rs 10 crore, digital devices, documents related to “bogus” import/export have been seized.
It said while three persons have been arrested, non-bailable warrants have been issued against some other accused.