In accordance with the provisions of the FEMA, 1999, the Directorate of Enforcement (ED) had searched the premises of M/s. Capricornian Shipping & Logistics Pvt Ltd and its directors, Sanjay Goswami and Vijay Kumar Shukla. Additionally, searches have been conducted at the offices of related companies, including M/s. Laxmiton Maritime, M/s. Hindustan International, M/s. Rajnandini Metals Limited, M/s. Stawart Alloys India Pvt Ltd, M/s. Bhagyanagar Limited, M/s. Vinayak Steels Limited, M/s. Vashishta Constructions Pvt Ltd, and their directors/partners, Vinod Kedia and Sandeep Garg. The searches have been conducted at various locations, including Delhi, Hyderabad, Mumbai, Kurukshetra, and Kolkata.
The ED opened an investigation after receiving reliable information, which showed that the previously mentioned companies were involved in substantial outward remittances of foreign exchange from India totaling Rs. 1800 Crore to M/s. Galaxy Shipping & Logistics Pte Ltd. and M/s. Horizon Shipping & Logistics Pte Ltd., both of which are under the management of Anthony De Silva.
The term “outward remittance” describes the sending of money, usually in the form of foreign exchange, from a citizen of one nation—for example, India—to a beneficiary located outside that country. The Reserve Bank of India (RBI) mandates that those who are sending money overseas must notify the recipient bank or money changer about their intention of sending the funds and provide them with Know Your Customer (KYC) documentation. It is important to follow these guidelines while sending money overseas from India.
The search revealed that M/s. Capricornian Shipping & Logistics Pvt Ltd, M/s. Laxmiton Maritime, and their associates were transferring outward remittances totaling Rs. 1800 Crore to entities based in Singapore, using shell companies like M/s. Neha Metals, M/s. Amit Steel Traders, M/s. Triple M Metal and Alloys, M/s. HMS Metals, etc. to help them layer the payments through a complex network of transactions.
A shell company acts as a tool to conceal the source of illicit funds. By directing funds through these entities, individuals can avoid detection, as the company’s activities and transactions seem legitimate. Usually, this means setting up a shell corporation in a country known for having strict privacy laws. These places, which are sometimes referred to as “tax havens,” offer a legal barrier of secrecy, making it more difficult for investigators to track money trails back to their illicit sources. After that, the shell firm engages in a series of activities with the goal of “laundering” the tainted funds.
During the search, additional unexplained cash worth Rs. 2.54 Crore was discovered and seized; part of it was hidden inside a washing machine. During the search process, a number of digital gadgets and obscene documents were also taken. 47 bank accounts belonging to Capricornian Shipping & Logistics Pvt Ltd and the relevant businesses have been frozen.
