Accused Mohsin Ahmed Mustakali Khilji (L) and Sharif Miya Amirmiya Shaikh (R) | File Photo
Mumbai: The ongoing probe into the Malegaon money laundering case has exposed an allegedly complex financial network involving multiple shell entities and massive cash withdrawals. The Enforcement Directorate (ED) has found that apart from 14 Nashik Merchant Cooperative Bank (NAMCO) accounts and five Bank of Maharashtra accounts, the absconding mastermind, Mehmood Abdul Samad Bhagad, alias “Challenger King,” along with his alleged accomplices, operated six additional accounts under the Agriculture Produce Market Committee (APMC) allegedly facilitating cash withdrawals worth hundreds of crores. The APMC was apparently unaware of the misuse of its accounts.
According to the Supplementary Prosecution Complaint (PC), the syndicate allegedly opened fraudulent accounts in the names of M/s Pragati Traders, M/s MK Enterprise, M/s Astha Trading Co., M/s Vibhuti Trading, M/s Hardik Enterprise, and M/s Haresh Trading Co. The ED claims that shell entities M/s Hardik Enterprise and M/s Haresh Trading Co. were allegedly established by Gaurang Ganpat Parmar and his associates for suspicious financial activities.
The Investigation reveal that,Harsh Kanubhai Bairwa, proprietor of M/s Haresh Trading Co., and Hardikkumar Navinchandra Solanki, proprietor of M/s Hardik Enterprise, admitted that while the accounts were opened using their identity documents, they had no control over them. Further investigations revealed that Mohsin Ahmed Mustakali Khilji (Accused No. 4) and Sharif Miya Amirmiya Shaikh (Accused-5) actively managed the Axis Bank accounts of M/s Hardik Enterprise and M/s Haresh Trading Co.
The financial probe agency has also found strong links between the accused and other undisclosed bank accounts operated under fraudulent entities. Financial records cited in the Prosecution Complaint (PC) suggest that transactions in the Axis Bank accounts of these entities allegedly received credits totaling Rs 6.27 crore from the aforementioned Nashik Merchant Cooperative Bank (NAMCO) Bank accounts and five Bank of Maharashtra accounts. The funds were later withdrawn in cash by Nagani Akram Mohammad Shafi, alias “Monu” (Accused-2), and Vasim Valimomad Bhesaniya, alias “Sanju” (Accused-3).
Further analysis of these accounts revealed cash withdrawals totaling Rs 28.22 crore within a span of less than two months (October-November 2024).
The ED investigation has further alleged that Khilji and Shaikh received commissions in cash for allegedly facilitating the withdrawals from M/s Hardik Enterprise and M/s Haresh Trading Co.’s accounts. The same fact was admitted by both accused during the recording of their statements under Section 50 of the PMLA.
The PC states that during questioning, Khilji and Shaikh admitted that 0.55% of the total cash withdrawals—Rs 55,000 per Rs 1 crore—was distributed among the accused, including Mehmood Bhagad alias “Challenger King” and his associates. Additionally, Khilji and Shaikh allegedly confessed to receiving Rs 13 lakh as commission from Bhagad for transactions linked to the Axis Bank accounts of M/s Hardik Enterprise and M/s Haresh Trading Co. A significant portion of these funds, they allegedly admitted, was used for personal expenses and further distribution among accomplices.
In an attempt to evade law enforcement, Khilji and Shaikh fled to Bangkok, Thailand, immediately after the Enforcement Directorate (ED) conducted searches on November 14, 2024, at premises linked to M/s Haresh Trading Co. and M/s Hardik Enterprise. During questioning, they admitted to spending Rs 3 lakh from their commission earnings on expenses during their trip.
Forensic analysis of the accused’s mobile phones has allegedly revealed incriminating WhatsApp conversations regarding financial dealings with multiple individuals. According to the Prosecution Complaint (PC), the Axis Bank accounts of M/s Hardik Enterprise and M/s Haresh Trading Co. were allegedly used for various cybercrime-related activities across India. In response, the National Cybercrime Reporting Portal (NCRP) has reportedly issued multiple notices following complaints of cyber fraud linked to these accounts.
The ED continues to probe the alleged financial network, tracking further cash movements and potential links to other undisclosed entities.
