255 Accounts Linked To Terror Funding And Political Ties

Mumbai: In the Malegaon money laundering case, the Enforcement Directorate (ED) suspects that 255 primary bank accounts, dubbed the “real Kuber” of the operation, are potentially linked to terror funding. The investigation indicates a well-organized and meticulously managed money laundering network, allegedly tied to political entities.

The agency is dissecting complex layers of transactions designed to obscure the money trail. Evidence points to these accounts being opened fraudulently under the names of unsuspecting Hindu youths, used solely to amass large sums allegedly linked to terror financing intertwined with political networks. These funds were then systematically transferred to multiple other accounts.

The ED has uncovered a web of suspicious financial activity tied to the 255 primary accounts in several banks including some nationalised ones. These accounts received funds from flagged accounts allegedly connected to political leaders who are directly or indirectly associated with religious politics and inflammatory activities. The agency is tracing the links between these accounts, transactions, and individuals, revealing a web of illicit financial flows.

Seized Cash during the ED serch operartion | File Photo

ED’s investigation revealed that Rs 379 crore was withdrawn from these accounts, suspected to be used for terror-related activities, including creating panic during assembly elections. Portions of the funds were reportedly paid in cash to fundamentalist organizations to fuel religious propaganda, incite Hindu-Muslim clashes, and orchestrate unrest among scheduled and nomadic tribes and OBCs. Some individuals with alleged ties to political parties were identified during the recent elections.However the agency officials not revealing the name of the people as the names are linked political parties persons are under scrutiny and investigation are on critical stage the official said to FPJ.

Seized Cash during the ED serch operartion | File Photo

During the probe, the ED issued summons to several account holders from 255 bank accounts. Upon questioning, some stated that the suspicious funds in their accounts were linked to gambling and betting. Further interrogation revealed that these account holders were either partners or players in betting platforms. An in-depth review of these accounts showed that the betting-generated funds transferred to these accounts received from the source accounts were being used as temporary holding stations where the funds were parked. A significant portion of these funds was later withdrawn and is suspected to have been used to support suspicious activities.

The financial probe agency noted suspicious patterns like transactions not matching the declared purpose of the accounts, sudden surges in account activity, and multiple accounts opened under similar names or addresses. Some accounts, initially appearing legitimate due to their association with charitable organizations, were exposed as fronts for funneling money for allegedly nefarious purposes.

Seized Cash during the ED serch operartion | File Photo

Investigations also revealed accounts registered under fake or non-existent businesses showing high transaction volumes without any corresponding legitimate business. These were used to layer and obscure the origins of the funds. There were also significant, unexplained cryptocurrency purchases, allegedly suggesting an attempt to hide dirty money.

The investigation revealed that from these 255 accounts, companies, firms, and individuals transferred approximately Rs 114 crore to 19 accounts in Nashik Merchant Cooperative Bank and Bank of Maharashtra, Malegaon branch. These 19 accounts were fraudulently opened allegedly by the arrested accused, Siraj Memon, who is alleged to have used falsified documents to facilitate these transactions. acted on the instructions of the arrested accused Nagani Akram Mohammad Shafi and alleged mastermind, Mehmood Bhagad, also known as “Challenger King” or “MD,” who is currently absconding and has fled the country. While Memon was based in Malegaon, Shafi and Bhagad are from Ahmedabad.

Following instructions, Siraj Memon allegedly withdrew Rs 14.60 crore, which was later transferred to Mumbai through angadia channels. The ED found that the cash handed over to a hawala trader was subsequently transferred to Dubai. According to the investigation, the remaining amount, around Rs 100 crore, was allegedly laundered into 21 other shell company accounts by the accused Siraj Memon, based on the details and instructions provided by the mastermind, Challenger King, and Shafi.

The investigation further revealed that out of the Rs 14.60 crore withdrawn by Siraj Memon and transferred through hawala operations, approximately Rs 7.5 crore from the cash portion was routed to five Dubai-based firms:

1. Smart Care General Trading LLC

2. Seven Seas International

3. Kobalt Trading

4. Surya IT Solution LLC

5. Premium Information Technology Limited Company

According to official sources, these firms were registered under the name of Siraj Memon, a tea and cold drink vendor from Malegaon, who is among those arrested. However, investigators suspect that Mehmood Bhagad is the alleged true beneficiary of these firms. Bhagad, who is currently absconding, is allegedly linked to fundamentalist groups and is considered one of the key architects of this laundering scheme.

So far, the agency has seized around Rs 20 crore, The investigation into the remaining part of Rs 379 crore, suspected to be linked to potential terror activities, continues.