The Enforcement Directorate (ED) has identified Mehmood Bhagad, also known as “Challenger King” or “MD,” as one of the key mastermind behind over the Rs 1000 crore Malegaon money laundering case.Bhagad, a 35-year-old Gujarat-based operative reportedly fled the country following the arrest of primary accused Siraj Mohammad, who is accused of facilitating the money laundering operation by opening 14 fraudulent bank accounts and laundering funds through 21 additional accounts across India.

The ED has issued a Look Out Circular (LOC) against Bhagad and is actively investigating his money trail footprint.

During the probe, the ED uncovered another money trail, in addition to the Rs 1000 crore linked to money laundering, involving illicit funds amounting to approximately Rs 4 crore. These funds were siphoned off from 14 accounts at Nasik Merchant Co-operative Bank (NAMCO Bank) and transferred to five Dubai-based companies linked to Siraj Mohammad. However, following further questioning and investigation, the ED suspects that all five dubai based shell firms, though registered in Siraj’s name, were actually controlled by the absconding mastermind, Mehmood Bhagad, alias “challenger King.” While the accounts were opened in Siraj’s name, Bhagad is believed to be the real beneficiary behind these transactions.

The ED has uncovered significant details during the questioning of the arrested accused into a major financial scam, shedding light on the extensive and intricate network masterminded by Mehmood Bhagad, the so-called “Challenger King” of this illicit empire. The network, including the hiring of two individuals Nagani Akram Mohammad Shafi and Vasim Valimohmad Bhesaniya whom Bhagad employed at a monthly salary of Rs 35,000 to assist in executing his plans. Shafi and Bhesaniya were instrumental in establishing numerous shell companies in cities such as Navi Mumbai, Nashik, Surat, Ahmedabad, Uttar Pradesh, Rajkot, Chhattisgarh, and Delhi in a remarkably short period.

During interrogation, Shafi revealed that the entire operation was masterminded by Mehmood Bhagad, infamously known as the “Challenger King” or “MD.” Sources indicate that after the arrest of Siraj Mohammad, Bhagad informed Shafi that he had already fled the country. Furthermore, he instructed Shafi to escape as well, warning him to leave immediately if he wanted to avoid being apprehended by the authorities. Acting on Bhagad’s directive, Shafi attempted to flee but was intercepted by law enforcement at Ahmedabad Airport, bringing his escape bid to an abrupt end.

The ED’s investigation revealed that Shafi and Bhesaniya allegedly setup over 300 bank accounts and multiple shell companies/firms to launder illicit funds under the direction of Bhagad. Shafi, operating under various aliases such as Mamu, Moin Khan, Ismail Khan, Salman Shakil Mirza, and Mohammad Sajid Mohammed, to carry out the money laundering operation across multiple states.

The ED identified over 200 accounts linked to illegal financial dealings and hawala activities, which were used to receive and transfer illicit funds. While these accounts have been traced by the financial probe agency, more than 100 additional accounts tied to shell companies remain under investigation. The probe further revealed that Shafi and Bhesaniya withdrew substantial sums from these accounts, channeling the cash to Angadias and hawala operators in Ahmedabad, Mumbai, and Surat all under the instructions of Mehmood Bhagad, infamously known as the “Challenger King.”

Additionally, the investigation revealed that Shafi hired the Malegaon-based trader and primary accused Siraj Mohammad, along with his associates, to assist in the banking fraud and money laundering operation. The ED discovered that all 14 bank accounts opened by Siraj Mohammad were managed by Shafi. Acting on Shafi’s instructions, Siraj and his team opened the accounts at NAMCO Bank to transfer illicit funds. Shafi directed Siraj to withdraw Rs 14 crore, which was subsequently moved to Mumbai through the hawala network. In addition, under Shafi’s supervision, Siraj transferred over Rs 1000 crore to 21 other shell company accounts—each of which was controlled by Shafi, acting on the explicit instructions of Bhagad, the so-called “Challenger King” of this illicit empire.

According to officials, Bhagad orchestrated a remarkably sophisticated and clandestine operation. His intricate plan was designed to ensure that his name never surfaced in any official records or financial dealings, enabling him to operate with complete anonymity. Despite maintaining a low profile, Bhagad meticulously controlled and managed all transactions, positioning himself as the ultimate beneficiary of the illicit funds. Through strategic maneuvering and careful orchestration of the financial network, he successfully reaped the vast rewards of the illegal enterprise, all while remaining out of the public eye.

The ED suspects that there may be several other syndicate groups, similar to Shafi, actively working for the “Challenger King,” whose activities are currently unknown to the investigating agencies. However, the agency believes that these groups will likely be uncovered in the course of the ongoing investigation. The ED’s investigation into the money trail of “debit transactions” made through online banking channels has uncovered significant findings. A large portion of the funds was transferred to 21 sole proprietary concerns. Analysis of these accounts revealed hundreds of crores being credited, mainly through online channels, which were then transferred to various firms and companies. Further scrutiny also revealed large cash withdrawals, running into hundreds of crores, underscoring the scale of the illicit financial activities.


Rahul Dev

Cricket Jounralist at Newsdesk

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