The Enforcement Directorate has seized Rs 4.25 crore in cash after raids in Delhi and Jaipur on alleged hawala dealers using shell firms to transfer crores of rupees abroad, the agency said on Friday.
It is reported that the officials raided Kailash Khandelwal and his brother Kamal Khandelwal under the Foreign Exchange Management Act (FEMA). The ED said in a statement that the brothers and their other operators based in the country and in Dubai "used to arrange foreign currencies like USD, Pound, RMB, and Euro among others at various locations abroad on demand by Indian nationals and also by people residing in India". The agency searched at nine premises linked to them in Delhi and Jaipur and seized Rs 4.25 crore in cash and "incriminating documents reflecting transactions through shell companies in India and Hong Kong".
It charged that the duo "arranged" funds if anyone wanted to transfer money to India from abroad. "Funds were transferred in cash and also using bank accounts," it alleged. Documents and paper slips related to international hawala transactions running into several hundred crores have been found at the premises searched, it further said. "The scrutiny and examination of documents is being done and further investigation is in progress," the agency said.