Mumbai: In the ongoing Malegaon money laundering investigation, the Enforcement Directorate (ED) has uncovered a sophisticated operation involving shell companies used to illegally transfer funds abroad under the guise of software imports. Searches at the residence of key accused Seraj Ahmed Mohammad Haroon Memon (43), a resident of Malegaon, led to the seizure of crucial documents, including evidence of money transfers abroad from the accounts of these shell entities, confirming the allegedly illicit transactions.
According to the prosecution complaint (PC) during the scrutiny of the seized documents, it was revealed that Seraj Ahmed was linked to four shell entities: M/s Cubex Infosoft, M/s Ezilon Solutions, both based in Pune, and M/s Ferbion International and M/s Blaze International. These entities were used to funnel several crore rupees abroad, disguised as payments for software licenses.
On the other hand, Seraj Ahmed not only used the identity documents and SIM cards of several individuals, but also his own and his wife Nafisa Banu’s identity documents to establish the shell entities M/s Ferbion International and M/s Blaze International. Bank accounts opened in the names of these companies received funds amounting to crores of rupees, which were then moved through circular transactions.
The ED's PC stated that Seraj Memon admitted to his involvement in a sophisticated syndicate that exploited identities to set up shell entities for laundering money. These entities were used to route funds from illegal sources, amounting to hundreds of crores. He further admitted that these accounts were used for circular transactions and the routing of funds, amounting to hundreds of crores of rupees, generated from illegal activities.
The ED found that Seraj Memon controlled and managed the bank accounts of Cubex Infosoft and Ezilon Solutions, established in Pune in 2023, which remitted Rs5.41 crore overseas under the false claim of importing software licenses, on the instructions of Mehmood Abdul Samad Bhagad alias Challenger King. Further scrutiny revealed that fourteen accounts were opened under these entities, and fraudulent remittances were processed through them.
During the investigation, the financial probe agency found that M/s Yatesh Renuke & Co. a chartered accountant firm, allegedly played a pivotal role in this process. The firm issued certificates for the Cubex Infosoft and Ezilon Solutions, these entities to legitimize the foreign remittances which were required for outward remittances under the guise of software license imports. Based on these certificates, outward remittances were made to transfer proceeds of crime (PoC), amounting to several crores, from the bank accounts of these two entities. Searches were subsequently conducted at the premises of Yatesh Renuke, the proprietor of the firm, where four incriminating digital devices were confiscated. In the statement Renuke stated that he had issued a total of 24 certificates including 15CA, 15CB, and CA certificates, required for the software import amounting to Rs5.63 crore for M/s Cubex Infosoft and M/s Ezilon Solutions, without verifying whether the software was actually imported by these entities in India.
Similarly, Seraj Ahmed established M/s Ferbion International and M/s Blaze International using his own identity, along with that of his wife, Nafisa Banu. These entities were used to receive funds amounting to crores of rupees from multiple accounts held in the names of different entities. Investigations reveal that a portion of the POC, generated from illegal activities, including online gambling and betting, was diverted abroad through foreign outward remittances under the guise of bogus software imports by these two shell entities.
Furthermore, the investigation indicates that these entities also received funds from 14 accounts of Nashik Merchant Cooperative Bank (NAMCO) Bank and five Bank of Maharashtra accounts, all of which were operated, controlled, and managed by Seraj Memon. He acted on the instructions of the absconding accused and mastermind of the syndicate, Challenger King and his accomplices.
Bank analysis showed that M/s Blaze International and M/s Ferbion International, with accounts at Kotak Mahindra Bank and HDFC Bank, had transactions amounting to Rs43.65 crore credited, with debits of Rs 43.64 crore and foreign remittances worth Rs 7.14 crore.
Another chartered accountant, Suraj Shirish Maru from M/s Kamal Kasat & Co., also allegedly played a crucial role in facilitating these fraudulent transactions. Maru’s firm issued 32 certificates for outward remittances from M/s Blaze International and M/s Ferbion International. Maru admitted in his statement to issuing 14 certificates for M/s Ferbion International, amounting to Rs 3.52 crore and 18 certificates for M/s Blaze International, amounting to Rs 4.16 crore , without verifying whether the software was actually imported, received, and implemented in India by these entities.
This elaborate money laundering operation, involving multiple shell companies, fraudulent import licenses, and manipulation of banking systems, highlights the growing complexity of illegal financial activities. The ED is continuing its investigation into the role of various individuals and firms involved in this massive financial fraud, which has resulted in the illegal transfer of several crores abroad. The authorities have seized digital evidence and are working to trace the ultimate beneficiaries of these illicit transactions.