In accordance with the Prevention of Money Laundering Act of 2002, the Directorate of Enforcement (ED) has attached 5 immovable properties belonging to Naresh Jain and others, including land and residential flats, at Gandhi Nagar (Guj), Greater Noida (UP), Solan (HP), and Indore (MP). These properties are valued at Rs. 21.31 Crore.
The Economic Offences Wing (EOW) of the Delhi Police filed a FIR on the basis of which the ED started proceedings under the Prevention of Money Laundering Act, 2002 by recording an ECIR against Naresh Jain and others for the commission of offences punishable under various sections of the Indian Penal Code, 1860.
The ED inquiry found that Naresh Jain and others engaged in local and international Hawala operations including the provision of lodging to co-conspirators (the beneficiaries) in exchange for his commission. To do this, Naresh Jain created a network of shell businesses with the help of his allies, confidants, workers, and others by founding corporations or other commercial organisations like firms or sole proprietorships.
According to the investigation, Naresh Jain owned and ran 104 international and 450 Indian organisations. Both the authentic identity proofs and documents of the fake shareholders and directors as well as the fabricated identity proofs and documents of these shareholders and directors were used to incorporate these businesses. These shell companies/shell entities were used to open and run bank accounts for facilitating fraudulent/over-invoiced/under-invoiced import and export transactions, providing desired accommodation entries to known and unknown beneficiaries by rotating/layering funds through the web of these shell companies in order to cause a loss to the exchequer and banks in lieu of commission. Additional investigation is being conducted.
