Chennai: Sleuths from the Enforcement Directorate arrested K.Liakath Ali for money laundering. He was running shell companies and making outward remittances in dollars running into many crores of rupees without importing anything. He would use the dollars sent abroad in this manner for hawala transactions. On Tuesday, the ED also froze Rs 20 crores found in his bank accounts.
The modus operandi of Liyakath ali, a man with many aliases like Waseem Liyakath Ali, Shahid Liyakath Ali and Abdul Liyakath Ali, was unearthed by ED officials during nationwide raids on Saturday. He was arrested and lodged in Puzhal prison, said P.Manikkavel, zonal joint director, ED, Chennai. Funds of '20 crores, parked in different bank accounts for outward remittances in foreign exchange, were identified and frozen, as suspected proceeds of crime, the official added.
Investigations found that 24 outward remittance of Galaxy Impex, owned by Liyakath Ali, were made by filing forged bills of entry and a total outward remittance of Rs 18.66 crore was made without any actual imports into India thus causing depletion of foreign exchange to the country.
ED officials noted that traders engaged in the imports of electronic consumer goods in the past have cheated the Indian Bank, Thousand Lights Branch, Chennai by effecting outward remittance to the tune of US$ 11.778 million equivalent to Rs 78 Crores through bank accounts opened in the names of eight shell entities. Sleuths are on the lookout for three others, including Eliyas Peer Mohamed, brother of Liyakath Ali.
The case reached ED from Customs department after in house verification confirmed the fabrication of the bills of entry. Simultaneously, an FIR was also registered by the CCB-I, Chennai City Police based on a complaint of the Indian Bank.
The two brothers and their associates had conceived of such shell entities and operated firms with the names of Galaxy Impex, Green International, Snow City & Co., etc., by opening fictitious bank accounts with various banks. Investigations brought to light the possession of multiple PAN cards and driving licences by one person with minor variations in his name, which were used for opening bank accounts with various banks.
