Enforcement Directorate smells a rat in November gold imports

MUMBAI: Enforcement Directorate (ED) officials suspect a lot of black money may have been illegally converted into gold through bullion traders. The ED is also probing the connivance of banks in the process.

The ED collected nationwide data on gold imports in November 2016 which reveals total gold imports that month stood at 66,000 kg. Of this, 25,000 kg sold in Delhi, 15,000 kg in Ahmedabad, 7,300 kg in Hyderabad, 7,000kg in Chennai, 6,200 kg Bangalore, 2,550 kg in Kolkata and 1,250 kg in Mumbai.

Recently in Delhi, the ED arrested two Axis Bank officials for helping some people convert their demonetised currency into gold. Data shows that of the total gold imported in Delhi, 7,300 kg was brought by Axis Bank alone.

Earlier, a Kalbadevi-based bullion trader who was raided told the ED that he sold 600 kg gold in November after demonetisation and produced documents to support his claim. But the ED was not convinced, as it did not match the city's total gold imports in November. He was unable to produce gold purchase receipts.Also around Rs 200 crore deposited into his account came from various shell companies.

The trader claimed he sold them gold in exchange of money but was unable to provide customers' details. The ED al so found he had shifted most of the money out of his account and it had only Rs 8 crore.

Another bullion trader, earlier probed in the money laundering case against former Jharkhand CM Madhu Koda, allegedly had generated Rs 70 crore through gold sales after demonetisation.The ED attached his account but again found a very nomi nal amount in it.

Officials had searched premises of both traders and stated they were mainly trying to know how much gold the traders bought from institutions and will match it with their sales records. Officials suspect that bullion traders had bought less gold from institutions but forged records to show increased sales.

Maha diamond trader booked for laundering Rs 1.5k cr

The Enforcement Directorate (ED) has registered a case under the Prevention of Money Laundering Act against a diamond trader Ritesh Jain on Monday allegedly for laundering Rs 1,500 crore.

They found several documents during a search of his residence and office, including his photograph with the present chief of a prominent public sector bank.Officials stated they will probe if any bank helped Ritesh launder the money.