ED arrests hawala operator in Rs 2,200 crore import remittances case

MUMBAI: ED arrested Farooq Shaikh, entry operator in Rs 2,200 crore money laundering case they are probing against

Stelkon

company.
Shaikh was allegedly maintaining over 150 bank accounts, including in Punjab National Bank, and was using them to claim fake import remittances on behalf of various business entities.

ED was searching him since last few days and arrested him on Tuesday. They are probing about his other partners and associate companies.

Officials alleged that the company transferred Rs 2,252 crore abroad with the help of fraudulent import transactions between 2015-16 with the help of bank accounts. CBI has registered a cheating-forgery case against the company, its directors and unknown public servants last year. The agency suspected involvement of bank officials in the case.

It was alleged that Stelkon submitted forged imports documents to PNB, Canada Bank, State Bank of Hyderabad, Corporation Bank, Central Bank of India and Axis Bank and remittance money abroad through RTGS and

NEFT

.

Based on the CBI case, the ED also registered a money laundering case for investigation. Officials stated that Stelkon along with its associated company cheated the banks through fake bills and laundered the money abroad causing loss to the government.