AGS Infotech involved in the money laundering case. The AML Watchdog ED has investigated the case.
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.
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.
ABOUT AGS Infotech CASE
Money laundering investigation was initiated by ED against directors of M/s AGS Infotech Ltd., Bangalore and others for cheating the United Bank of India amounting Rs. 23.73 crore, by fraudulent way in the matter of sanctioning and availing credit facilities. The investigation was based on criminal case registered by CBI, BS&FC, Bangalore. The AGS Infotech was involved in the money laundering case.
ED filed prosecution complaint against M/s AGS Infotech Private Limited and its director G Dhananjaya Reddy before the Hon’ble Court of the Principal City Civil & Session Judge Special Court, Bangalore under Prevention of Money Laundering Act, 2002.
The investigation revealed that G Dhananjaya Reddy and other persons cheated the United Bank of India and availed loan of Rs. 23.73 crore by creating collateral security based on fabricated or fake documents. The same loan proceeds were diverted for the purposes other than for which it was sanctioned.
G Dhananjaya Reddy is Habitual offender and is mastermind of other two bank frauds committed by his companies namely – M/s Nexxoft Infotel Limited and M/s Ignis Technology Solutions Private Limited. He was also arrested by ED earlier under separate prosecution and properties worth Rs. 7.58 crore was attached in that PMLA cases.
