The Gupta Builders was involved in the investigation related to money laundering. The AML Watchdog has carried out the investigation process.
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 Gupta Builders CASE
ED initiated money-laundering investigation against a real estate company M/s Gupta Builders and Promoters Pvt Ltd., its Directors and others on the basis of Fir registered by Chandigarh and Punjab Police. ED has provisionally attached properties worth Rs. 147.81 Crore belonging to M/s Gupta Builders and promoters Pvt Ltd., its Directors – Satish Gupta, Pradeep Gupta and their associates Anupam Gupta and Navraj Mittal. Commercial spaces, residential house, agriculture land and Bank accounts were attached.
In the investigation ED revealed that aggregate amount of Rs. 478 crore was collected by the company from buyers. They defrauded the innocent buyers by promising to deliver flats/plot/commercial space but neither delivered the projects nor returned their money.
ED further revealed that the Directors of M/s Gupta Builders with other persons siphoned off money collected from buyers. The same money through fraudulent transactions was invested in various movable and immovable properties that are the proceeds of the crime and same are attached. Earlier ED had seized various documents and movable assets during the search conducted on 03/06/2022 at various premises of the persons in this case.
