Network of CAs and Hawala Operators Exposed: Over Rs 10,000 Crore Black Money Funneled Abroad via 98 Shell Companies

NEW DELHI: The Enforcement Directorate (ED) has uncovered a massive black money laundering network involving Chartered Accountants (CAs) and hawala operators, allegedly sending over Rs 10,000 crore abroad in the past few years. Searches conducted on January 2 in Thane, Mumbai, and Varanasi resulted in the recovery of digital evidence and documents detailing the modus operandi of the accused.

The ED identified Jitendra Pandey as the prime accused. He is accused of creating over 98 shell companies and operating 269 bank accounts to facilitate the laundering of “proceeds of crime” to foreign destinations, including Singapore, Hong Kong, and Thailand. The investigation revealed the use of RTGS entry operators to funnel money through layers of transactions involving multiple shell companies to obscure the origin of funds.

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The funds were eventually transferred to 12 private limited companies, which facilitated foreign remittances under the guise of payments for importing goods from China. The shell companies were falsely declared to be engaged in the freight and logistics business and used this cover to remit significant amounts abroad, citing freight charges.

The ED also uncovered the role of several chartered accountants who allegedly assisted in the creation of these shell companies and managed regulatory compliance, including filings with the Registrar of Companies (ROC). These professionals played a critical role in helping conceal the illicit transactions.

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Pandey, along with other accused, had already been arrested last year by the Economic Offences Wing (EOW) of Thane police. The ED is continuing its investigation into the network, which highlights the sophistication and scale of operations involved in laundering black money through shell companies and fake transactions.

Authorities are working to trace the full extent of the network and bring those involved to justice. Further developments are awaited as the probe progresses.

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