The AML Watchdog ED has filed an FIR against Mandeep Industries for involvement on illegal activities in money laundering.
WHAT IS MONEY LAUNDERING?
Money laundering is a process that criminals use in an attempt to hide the illegal source of their income. By passing money through complex transfers and transactions, or through a series of businesses, the money is “cleaned” of its illegitimate origin and made to appear as legitimate business profits.
There are three steps in Money Laundering:
- Placement
- Layering
- Integration
In most of the cases all the three cases won’t be present in money laundering. The will be times where all the three stages are combined, several stages may repeat several times. Money Mules comes in existence at the time when illegal money laundering activities takes place.
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.
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 Mandeep Industries CASE
ED has initiated money laundering investigation on the basis of the FIR registered by CBI, BS&FB, Mumbai against M/s Mandeep Industries, Rajkot under Prevention of Money Laundering Act,2002. It is a partnership concern of Ashish B. Talaviya, Kishorbhai Haribhai Vaishnani, Ramjibhai H. Gejera, Kalpesh P. Talaviya and Bhavesh Talaviya.
ED has provisionally attached immovable assets worth Rs. 16 crore. These asstes include immovable properties in form of Plant and Machinery, factory land and building, residential flats and plots located in Rajkot, Gujarat.
During investigation it was found that M/s Mandeep Industries has defaulted in repaying the loans to Union Bank of India in fraudulent manner, which has caused undue loss of Rs.44.64 crore to the bank. Investigation revealed that the company availed various loan facilities from Union Bank of India and diverted the funds to various loan fictitious entities and to personal accounts of the partners of the firm and part of diverted funds was used to purchase immovable properties. Therefore, Mandeep Industries is involved in illegal activities like money laundering, drug trafficking etc.
