The Enforcement Directorate on Tuesday attached Rs.5 crores in the form of Fixed deposits of Madanlal Jain in Afroz Fatta case vide provisional attachment order dated March 31. Investigation under the PMLA, 2002 were initiated on the basis of FIRs registered by the Detection of Crime Branch, Surat as sections 120 (B) read with 420,467,471 of the IPC are scheduled offences under the PMLA, 2002. Investigation revealed that amounts totaling Rs.5395.75 crores were remitted to companies in UAE and Hong Kong on the basis of forged bills of entry through the accounts of 9 companies in ICICI Bank, Surat.
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In this case involving shell companies Afroz Mohammed Hasanfatta, Madanlal Jain, Bilal Haroon Galani and others were involved in sending illegal remittances to UAE and Hong Kong from these accounts of nine companies in ICICI Bank, Surat on the basis of forged bills of entry. These nine companies received funds from the Axis bank accounts of Vandana and Co., M/s. Natural Trading Co., etc as well as from several other entities. The above entities received funds from several other entities including Arjay Gems Pvt Ltd., Center Point Gems Pvt Ltd., Clair Diamond Pvt Ltd., Diablue Export Pvt Ltd. etc.
These were shell companies mainly created, controlled and supervised by Madanlal Jain, using dummy persons as directors or partners. The funds for effecting these remittances in the form of cash was infused into the system mainly through cheque discounting and a web of companies and were then transferred to the ICICI bank accounts.
Madanlal Jain had diverted funds to the tune of Rs.5 crores to one of his companies including Orient City Scape Pvt Ltd for further investment in Sarr Realtors and Rigveda Properties pvt. Ltd. The funds being the proceeds of crime, Provisional Attachment Order 02/2017 has been issued on 31.03.2017 whereby the amount of Rs.5 crores in the form of Fixed deposits has been attached. The total attachment in this case is now Rs.14.74 crores.