MASSIVE ED action against PFI, 33 total bank accounts & Rs 68 lakh attached in PMLA case

In a big development, the Enforcement Directorate (ED) on Wednesday froze bank accounts of the Popular Front of India (PFI) in an ongoing PMLA investigation. The ED has provisionally attached 23 bank accounts of PFI having a collective balance of Rs. 59 lakh and 10 bank accounts of PFI’s front organization Rehab India Foundation (RIF) with a balance of Rs. 9.50 lakhs. A total amount of Rs. 68,62,081 has thus been provisionally attached under Section 5 of the Prevention of Money Laundering Act, 2002.

The ​ED has alleged that PFI, in active collusion with other associated accused persons, indulged in laundering of proceeds of crime in terms of Section 3 of PMLA, 2002. Since 2009, more than Rs. 60 Crore have been deposited in the accounts of PFI and more than half of the same has been deposited in cash. Similarly, around Rs. 58 Crore has been deposited in the accounts of RIF since 2010. These proceeds of crime mobilized in the form of cash were deposited by falsely projecting them as 'donations' from sympathizers and members, the agency has alleged.

Similarly, proceeds of crime mobilized in the form of cash were deposited by PFI leaders in the bank accounts of individuals and immediately thereafter, were transferred from these bank accounts to PFI’s bank account so as to project the fund movement as legitimate transfers, it has added.

Funds from Gulf were channeled into India illegally: ED

During ED’s investigation, it was also alleged that PFI, which has a well-structured & organized presence in Gulf countries for mobilization of funds as part of criminal conspiracy, allegedly sent these proceeds of crime secretly and clandestinely to India through underground and illegal channels. This was done by way of foreign remittances into the bank accounts of sympathizers, office bearers, members, and their relatives and associates in India and thereafter, transferred to the bank accounts of PFI, RIF and other individuals/entities.

"In this way, the proceeds of crime have been placed, layered & integrated, and therefore projected as untainted money in the bank accounts of PFI as well as RIF," the ED has alleged, flagging a larger criminal conspiracy of PFI to carry out various unlawful activities in India.

Notably, the ED has already filed a Prosecution Complaint in February 2021 and a Supplementary Prosecution Complaint dated May 2022 against members / office-bearers of Popular Front of India and Campus Front of India before the Special PMLA Court, Lucknow. The court has taken cognizance of the offence of money laundering against all the accused persons.