The central probe agency said it arrested “Chandrakant Narsidas Patel of M/s Pushpak Bullions Private Limited for money laundering in the post demonetisation period”, under sections of the Prevention of Money Laundering Act (PMLA). The agency called Mr Patel as the mastermind in this money laundering scam.
The Enforcement Directorate (ED) said in a statement that it was found that cash to the tune of Rs 84.5 crore were deposited in the account of companies- M/s Pihu Gold and M/s Satnam Jewels- post notes ban.
“The said amount was deposited in cash within a short span of 41 days between November-December 2016. The said funds were subsequently transferred to the account of Pushpak Bullions and further used towards purchase of 258 kg gold bullion,” it said.
The ED said the account of Pushpak Bullion was “already a declared non-performing asset (NPA) by the bank concerned”. “Preliminary investigation indicated that the said companies did not have matching economic wherewithal to have entered into such transactions in cash and subsequently layering the same through investments in gold bullion,” it said.
The agency is probing the case under PMLA and it is expected to produce Mr Patel in a special Mumbai court tomorrow. The two currencies of Rs 500 and Rs 1000 were demonetised after a declaration by Prime Minister Narendra Modi on November 8.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)