In accordance with the Prevention of Money Laundering Act of 2002, the Directorate of Enforcement (ED) searched four locations in Kerala on December 5, including the offices of Malabar Jewellery, Fine Gold, Atlas Gold Super Markets Pvt. Ltd., Kozhikode, and Shri Aboobacker Pazhedath, Malappuram.
A secret room used to store gold jewellery was discovered during the aforementioned searches, and as a consequence, 5.058 kg of gold jewellery worth Rs. 2.51 Crore and Rs. 3.79 Lakhs in Indian currency were recovered and seized from the concealed chamber.
Earlier, an ECIR/KCZO/31/2020 was recorded in the Kerala Gold Smuggling Case on the basis of an FIR filed by the National Investigation Agency (NIA), Kochi, pursuant to sections 16, 17 and 18 of the Unlawful Activities (Prevention) Act, 1967. This was done as a result of the seizure of 30.245 kgs. of smuggled gold by Customs (Preventive) at Trivandrum International Airport, which was disguised as diplomatic The suspects Shri Sarith P.S., Smt. Swapna Prabha Suresh and Shri Sandeep Nair were brought into ED custody from 05.08.2020 to 17.08.2020 after being detained by ED on 22.07.2020. On 06.10.2020, a Prosecution Complaint u/s 45 of the PMLA was filed against Shri Sarith P. S., Smt. Swapna Prabha Suresh, and Shri Sandeep Nair based on the results of the inquiry.
In the course of the subsequent inquiry, it was discovered that Shri M. Sivasankar, IAS, the Principal Secretary to the Chief Minister of Kerala at the time, had also supported the accused individuals in smuggling gold and had intentionally helped them portray proceeds of crime as clean assets. Thus, on October 28, 2020, Shri M. Sivasankar was also detained by the ED and charged as an additional accused.
FDs in bank accounts and cash seized from bank lockers totalling Rs. 1.85 crores (belonging to Smt. Swapna Suresh, Shri Sandeep Nair, Shri Sarith, and Shri Sadan Kumar, F/o Mr Sarith) were subject to a provisional attachment order that was issued on December 23, 2020. This order was duly confirmed on December 13, 2021, by the Hon’ble Adjudicating Authority (PMLA), New Delhi. On December 24, 2020, a Supplementary Prosecution Complaint was submitted against the accused, including Shri M. Sivasankar.
In the course of an investigation into the Customs’ seizure of smuggled gold, it was discovered that Shri Sarith P. S. gave his cousin Shri Akhil S. Rs. 14.98 lakhs to keep in safe custody. This sum was one of the proceeds of crime that Shri Sarith P. S. and Smt. Swapna Suresh generated from the smuggling of gold and commission received. As a result, on September 15, 2021, a Provisional Attachment Order was issued for attaching cash totaling Rs. 14.98 lakh and smuggled gold weighing 30.245 kg, valued at Rs. 14.82 crores (lying in the custody of Cochin Customs). On July 25, 2022, the Honorable Adjudicating Authority (PMLA), New Delhi, also validated the aforementioned attachment.
One Shri Aboobaker Pazhedath of Malappuram is a member of the Gold Smuggling Syndicate led by Shri Sarith P.S., Smt. Swapna Suresh, and Shri Sandeep Nair, with the support of Shri Sivasankar, IAS, was one of the beneficiaries, according to a money laundering probe. Aboobacker Pazhedath, the Promoter of Malabar Jewellery & Fine Gold Jewellery, both headquartered in Malappuram, Kerala, and one of the shareholders of Atlas Gold Super Markets Pvt. Ltd., Kozhikode, Kerala, owned 3 kg of the illegal gold that the Customs confiscated on July 5, 2020.
In an interview conducted under the PMLA, Shri. Aboobacker Pazedath confirmed that he was the owner of 3 kg of gold that had been seized by customs. In addition, he acknowledged that he had previously smuggled 6 kg of gold through the diplomatic luggage of the UAE Consulate. Malabar Jewellery, Fine Gold, and Atlas Gold Super Markets Pvt. Ltd., three of his business entities, obtained the funds necessary for the purchase of the aforementioned smuggled gold. Further investigation has shown that Shri Aboobaker Pazhedath continued to engage in gold smuggling-related operations through the aforementioned businesses.
Searches were thus performed at the aforementioned businesses as well as Shri Aboobacker Pazhedath’s residence, and as a consequence, 5.058 kg of gold worth Rs. 2.51 crore and Rs. 3.79 lakhs in Indian currency were found and recovered. The probe is being expanded upon.
