The ED’s investigation has revealed that these accounts were managed by Nagani Akram Mohammad Shafi, one of the arrested individuals. | Representational Image
In the ongoing investigation into a money laundering case exceeding Rs 1,200 crore linked to Malegaon, the Enforcement Directorate (ED) has identified a money trail of Rs 800 crore through debit and credit transactions from 21 bank accounts of shell companies. These companies, based in Navi Mumbai, Surat, Ahmedabad, Uttar Pradesh, and Delhi, were established within a short time frame.
The 21 shell company bank accounts received more than Rs 10,000 crore from 14 accounts at Nashik Merchant Cooperative Bank (NAMCO Bank),Malegaon which were allegedly opened by the arrested accused Siraj Mohammad and others. Additional transactions were traced to various bank accounts across the country to launder the illicit funds.
The ED’s investigation has revealed that these accounts were managed by Nagani Akram Mohammad Shafi, one of the arrested individuals. Shafi is alleged to have facilitated the movement of Rs 800 crore in debits and credits across these accounts, with a significant portion of the funds being channeled through hawala operations. Within a span of just 3 to 4 months, Shafi and his associates withdrew funds in cash from various regions across India and transferred them through hawala networks to Dubai-based firms and other international destinations.
The illicit funds were eventually transferred to Dubai-based firms linked to Siraj Ahmad, the primary accused in the case. Among the firms identified are Blaz International and Fairbean International, which are believed to have facilitated international transactions from India, further complicating the money laundering operations.
As part of its ongoing investigation, the ED team recently visited Nashik and interrogated Siraj Ahmad, who was previously in the custody of the Nashik Chavani Police Station. Ahmad has since been remanded to judicial custody and moved to Nashik Jail.
The ED had informed the PMLA court that during the investigation, it identified 300 bank accounts and several shell firms linked to the accused, Nagani Akram Mohammad Shafi. Of these, more than 150 bank accounts were found to be linked to illicit financial dealings and hawala operations, while the remaining bank accounts linked to the shell companies are still under investigation.During the investigation arrested accused shafi disclosed that the accounts of these shell companies were spread across the nation and were primarily used to receive and further transfer illicit funds. This information was revealed before the court by the agency while requesting for an extension of the remand of the accused on November 29.
The ED sources also stated that Shafi, who claims to have been just an employee earning Rs 35,000 per month for one Mahmud Bhagat alias Challenger King alias Jimmy, is misleading the agency. The agency has uncovered evidence revealing that Shafi, operating under several aliases—Mamu, Moin Khan, Ismail Khan, Salman Shakil Mirza, Mohammad Sajid Mohammed, and others played a pivotal role in a nationwide operation that orchestrated the opening of multiple shell companies to launder illicit funds.
According to the ED investigation, Shafi was actively involved in directing the arrested accused, Siraj Mohammed, to open more than 14 bank accounts at NAMCO Bank,Malegaon which were operated under his guidance. The agency’s investigation further revealed that Shafi, along with his accomplices, withdrew Rs 14 crore and transferred the funds to Mumbai via an angadia network, exposing a significant money laundering operation.
According to officials privy to the investigation, apart from the Rs 800 crore, a significant portion of the money from these 21 shell companies was transferred to additional shell company accounts, which are also under scrutiny.
Sources involved in the probe indicate that investigators are tracing a complex web of shell companies and business entities, many of which were established in the past six months solely to route illicit funds linked to the arrested accused, Shafi and Siraj. These entities, including sole proprietorships and partnership firms, appear to have been strategically designed to obscure the money trail, with no legitimate business operations involved.
The ED is utilising KYC data to trace the origin and routing of these funds and is also working to uncover the role of intermediaries involved in these transactions.
