Kolkata | December 02, 2025
The Enforcement Directorate (ED), Kolkata, has filed a Prosecution Complaint (PC) under the Prevention of Money Laundering Act (PMLA), 2002 against M/s Yecnail Enterprises Pvt. Ltd. and its associated entities for their alleged role in a sophisticated Trade-Based Money Laundering (TBML) racket. The complaint was filed on November 28, 2025, before the Special Court (PMLA), Kolkata.
According to the ED, the syndicate operated a network of shell importing companies to funnel illicit funds abroad on the pretext of high-value imports. The remittances were linked to Proceeds of Crime (POC) generated through offences under Sections 132 and 135 of the Customs Act.
How the Laundering Network Operated
The financial investigation reveals:
- Multiple dummy companies were incorporated across India
- These entities declared imports of ordinary stones as precious and semi-precious gems
- Import documents were heavily over-invoiced
- The fraudulent valuation was enabled with the help of:
- Government-approved valuers
- Custom House Agents (CHAs)
Funds were layered among several shell entities within India before being sent overseas as purported import payments—despite the underlying trade being negligible or entirely fictitious.
ED officials estimate that the syndicate managed to illegally transfer hundreds of crores of rupees out of the country using this modus operandi.
A Classic Model of Trade-Based Money Laundering
The case demonstrates the widely used TBML technique, where:
- The origin of illicit money is concealed
- Funds are parked in overseas safe havens
- Transactions appear legitimate through fake trade paperwork
- Experts say that such schemes not only result in significant revenue loss to the government, but also enable black money to enter the global financial system, making it harder for enforcement agencies to trace.
Assets Worth ₹3.98 Crore Attached
During the investigation, ED issued Provisional Attachment Orders against movable and immovable assets valued at ₹3.98 crore, including:
- A residential flat
- Bank balances
- Other properties and financial holdings
These assets are believed to represent either the direct proceeds of crime or property of equivalent value derived from the laundering operations.
Further Investigations Underway
Next steps in the probe will focus on:
- Identifying additional individuals and corporations involved
- Tracing remitted funds overseas and establishing the end-beneficiaries
- Proving collusion in valuation and customs-related documentation
Sources indicate that the network may have international linkages, prompting coordination with foreign investigative agencies.
’Zero Tolerance’ on Economic Crime
An ED officer emphasised the agency’s stance:
“Entities misusing shell companies and fake trade channels to undermine India’s economy will face strict and sustained enforcement action.”
The filing of the prosecution complaint marks a significant step in India’s broader campaign against trade-based money laundering and illegal capital flight. It reinforces ED’s resolve to dismantle networks that threaten the country’s financial integrity.
