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Nagpur: The Enforcement Directorate (ED) on Friday said it has arrested a Nagpur man in connection with its money laundering investigation linked to a case of smuggling of foreign betel nuts through the India-Myanmar border by evading customs duty.
Wasim Bawla was arrested on Thursday under the criminal sections of the Prevention of Money Laundering Act (PMLA) and was sent to ED custody till June 30 by a special court in Mumbai, it said.
According to the agency, Bawla was “actively involved in smuggling of foreign-origin betel nuts through his active association with traders from Assam, transporters, warehouse owners and shell entities (dubious firms) which lent bogus invoices to facilitate the sale purchase of betel nuts in Nagpur region.” The agency in a statement alleged that Bawla also “used ill-gotten proceeds of smuggling to purchase secret official documents by bribing contractual staff of the ED.” It said he “made all the efforts” to evade the ED investigation by changing phones frequently, not responding to summonses, and not participating in the search proceedings despite being in Nagpur.
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Monday 04 Nov. 2024
It alleged that Bawla gave “contradictory” answers in his statements and his conduct was “evasive and untruthful.” The money laundering case stems from a complaint of the CBI and the Directorate of Revenue Intelligence (DRI).
The DRI, an agency under the Union finance ministry, had conducted an investigation against various Nagpur-based traders who were procuring foreign origin betel nuts.
The ED said its probe found that “large amounts were transferred to a few Assam-based parties which were ultimately withdrawn in cash and this money was suspected to be used for purchase of smuggled foreign origin betel nuts.” “The foreign origin betel nuts were transported to Nagpur by fabricating domestic invoices, transportation bills etc,” the ED said.
