On September 3, 2023, the Directorate of Enforcement (ED) took into custody five individuals in Kerala, namely V S Suresh Babu of Kottayam, A K Shaji, also known as Payasam Shaji, Mohammed Shibu, Mohammed Shiju of Ettamanoor, and Siraj V Essakhan of Ernakulam.
Their detention was carried out under the provisions of the COFEPOSA Act, 1974, following an investigation that revealed their involvement in extensive international hawala operations, amounting to over Rs 300 Crore over several years, in violation of the FEMA, 1999. Subsequently, the detainees were transferred to the Central Prison & Correctional Home in Thiruvananthapuram, Kerala.
Earlier, on June 19, 2023, the ED had conducted searches at 14 different locations across Kerala as part of an ongoing investigation into a network of hawala operators operating within the state. These raids were targeted at entities suspected of conducting hawala transactions under the pretence of running forex money exchange businesses, gift shops, textile stores, jewellery outlets, and readymade garment shops.
The searches were carried out under the provisions of the Foreign Exchange Management Act, 1999, and resulted in the seizure of a significant amount of assorted foreign currencies from over 15 countries, along with an equivalent of INR 4 Crore.
The material seized, including digital records, provided evidence that the suspects had been engaging in illegal forex dealings without adhering to Know Your Customer (KYC) regulations or issuing bills. The investigation into this matter is currently ongoing.
