Corruption
ED Attaches Rs 1.52 Crore Assets in Demonetisation Period Transactions Fraud
The Directorate of Enforcement (ED) Lucknow Zonal Office has provisionally attached movable assets worth Rs 1.52 crore under the Prevention of Money Laundering Act (PMLA), 2002, in connection with the Netar Sabharwal and others bank fraud case.
The attached assets include two fixed deposits, one belonging to Manmohan Agarwal, proprietor of M/s Shiv Jewellers, amounting to Rs 1.22 crore, and the other belonging to Mayur Agarwal, proprietor of M/s JS Jewellers, worth Rs 30.76 lakh. The ED’s action stems from an investigation initiated following an FIR registered by the Anti-Corruption Branch (ACB) of the Central Bureau of Investigation (CBI) Ghaziabad. The FIR alleged that fraudulent cash deposits were made in bank accounts during the demonetisation period in November-December 2016.
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The ED investigation uncovered that officials of J&K Bank, in criminal conspiracy with private individuals, falsified bank records and allowed large cash deposits during demonetisation. These deposits were subsequently layered through multiple suspicious transactions to obscure their origin before being routed to the ultimate beneficiaries under the guise of legitimate business transactions.
M/s Shiv Jewellers and M/s JS Jewellers were identified as the primary beneficiaries of the fraudulently deposited funds. The attached fixed deposits, totaling Rs 1.52 crore, represent a provisional measure as the investigation continues.
The ED’s findings highlight how cash deposits during demonetisation were exploited through forgery and conspiracy to bypass financial regulations. The money was routed through a series of transactions to camouflage its illegal origins, ultimately benefitting specific entities.
Further investigation into the case is ongoing to uncover the full extent of the fraud and hold all responsible parties accountable. The ED’s action is part of its broader effort to curb financial crimes and uphold the integrity of the financial system.
