JAIPUR: The Directorate of Enforcement (ED), Jaipur Zonal Office, has provisionally attached immovable properties valued at approximately ₹2.67 crore under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, in a case involving a systematic and large-scale fraud on the Indian Railways by M/s Vinayak Logistics India Pvt. Ltd. and its proprietor/director, Pravesh Kabra.
The action follows an in-depth investigation initiated on the basis of three FIRs registered by the CBI, SPE Jaipur, which were subsequently followed by filing of charge sheets. The investigation revealed a premeditated criminal conspiracy, in which the accused entities deliberately misdeclared high-freight commodities such as marble powder, waste marble powder, and dolomite as low-freight commodities like alum powder and putty, with the sole intent of unlawfully reducing freight liability.
This manipulation resulted in substantial evasion of railway freight charges and Goods & Services Tax (GST), causing significant financial loss to the Indian Railways and the public exchequer. According to ED officials, the fraudulent activity was habitual, carried out over a prolonged period, and involved deliberate manipulation of freight booking records to illegally avail concessional freight rates.
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Proceeds of Crime and Asset Attachment
The Proceeds of Crime (POC), representing the wrongful gains obtained by the accused through this deception, have been quantified at approximately ₹16.15 crore. Investigation established that these illicit gains were systematically siphoned into the personal bank accounts of Pravesh Kabra, indicating clear intent to conceal the proceeds and enjoy the benefits of the crime.
Further scrutiny under the PMLA revealed that the POC were subsequently laundered and utilised for acquiring high-value immovable properties, as well as for personal and business expenditures. The properties provisionally attached by ED include a four-storey commercial building and another commercial property situated in Gurugram, Haryana, with a combined market value of approximately ₹2.67 crore.
Financial examination clearly indicated that the entire purchase consideration for the attached properties was paid from Kabra’s personal bank account, which primarily functioned as a conduit and repository for the POC generated from the scheduled offences.
ED’s Position and Ongoing Investigation
The present action reflects the ED’s firm commitment to tracing, identifying, and attaching Proceeds of Crime, ensuring that economic offenders do not retain or enjoy assets acquired through illegal means.
Officials emphasized that the investigation is ongoing. The agency continues to examine the flow of illicit funds, identify additional assets, and trace other persons involved in laundering the proceeds. The ED is also exploring further avenues to ensure that assets acquired using unlawfully diverted funds are recovered and accounted for.
Broader Implications
By attaching properties acquired through such illicit proceeds, the ED sends a strong deterrent message: individuals or entities engaged in financial fraud or evasion cannot retain the benefits of their criminal actions.
The ongoing investigation is expected to provide further clarity on the scale of the scheme, the network of accomplices, and the diversion of illicit proceeds. Additional attachment actions and prosecution may follow as the probe progresses.
