Enforcement Directorate arrests Mumbai trader on money laundering charges

CHENNAI: The Enforcement Directorate (ED) has arrested a Mumbai-based trader for allegedly laundering over Rs 19 crore funds sourced by him and others after defrauding a national bank in 2013.

Officials said the zonal office of the agency here arrested Ajit Jain yesterday under the provisions of the Prevention of Money Laundering Act ( PMLA) as he was "instrumental in laundering the proceeds of crime of over 19 crore."

"Investigations in the case are on," ED Joint Director K S V V Prasad said while confirming the development.

The case dates back to 2013 when Canara Bank registered a criminal case with Chennai Police for cheating and duping of Rs 19.21 crore funds against a few of its officials, private entities and National Award winning Bollywood actress Leena Maria Paul.

ED sources said Jain was allegedly involved in routing and laundering of the funds from the accused to the mastermind of the financial fraud after receiving the amount in "several dummy companies" by way of RTGS (Real Time Gross Settlement).

The agency, which registered a money laundering case last year to probe this fraud, has charged Jain with indulging in alleged illegal transfer of funds through hawala and money laundering.

Jain was later produced in a special anti-money laundering court here from where he was remanded to judicial custody. The CBI is also probing this case.