The Arunachal Highway Project was involved in the investigation. The AML Watchdog ED investigated the case. The case was related to the illegal money laundering that was taking place.
WHAT IS PREVENTION OD CORRUPTION ACT?
The Prevention of Corruption Act, 1988 is an Act of the Parliament of India enacted to combat corruption in government agencies and public sector businesses in India. An Act to consolidate and amend the law relating to the prevention of corruption and for matters connected therewith.
WHAT IS DIRECTORATE OF ENFORECEMENT?
The Directorate of Enforcement is a multi-disciplinary organization mandated with investigation of offence of money laundering and violations of foreign exchange laws. The statutory functions of the Directorate include enforcement of the following: Prevention of Money Laundering Act,2002, Foreign Exchange Management Act,1999, Fugitive Economic Offenders Act,2018, Foreign Exchange Regulation Act,1973 and Sponsoring agency under COFEPOSA.
WHAT IS PREVENTION OF MONEY LAUNDERING ACT?
An Act to prevent money-laundering and to provide for confiscation of property derived from, or involved in, money-laundering and for matters connected therewith or incidental thereto. Whosoever directly or indirectly attempts to indulge or knowingly assist or knowingly is a part or is actually involved in any process or activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of offence of money-laundering.
How does Money Laundering Work?
Money laundering plays a major role for the criminal organization to curb the illegal activities that are taking place. To deal with the huge amount of cash is regarded as dangerous. The criminals are searching different ways to deposit there money in the legitimate financial institutions.
There are number of ways to launder money from a very simple to complex thing. Smurfing is regarded as one of the common form of money laundering. In smurfing the criminals distributes the large number of cash. The Money Laundering can be fulfilled by using the different type of currency exchanges.
ABOUT Arunachal Highway Project CASE
Money laundering investigation on the basis of FIR registered on 01/02/2019 by SIC (Vig.) Itanagar, Arunachal Pradesh was in initiated by ED under various sections of IPC,1860 and section 13(1)(a) and 13(2) of Prevention of Corruption Act, 1988. The FIR revealed that some government officials with some private individuals misappropriated the funds of compensation of Trans Arunachal Highway Project for affected persons.
Two search operations were carried out by ED under the provisions of Prevention of Money Laundering Act in Arunachal Pradesh. In the investigation relating to Trans Arunachal Highway Project bank accounts/RD/FDs having balance of Rs. 3.95 Crore were freezed.
The investigation of Arunachal Highway Project revealed that multiple fake beneficiaries were created by government officials in collusion with private individuals for wrongful gain to themselves and wrongful loss to the government exchequer. The investigation further established that POC generated by the accused were routed through several bank accounts and FDs.
