ED Arrests Mohali Builder in ₹4,817-Crore Remittance Probe

Swift Summary:

• The Enforcement Directorate (ED) arrested Rajdeep Sharma, a Mohali-based builder, in connection with illegal foreign remittances worth ₹4,817 crore involving forged invoices related to under-invoiced imports from China and Hong Kong.
• Sharma was produced before a Delhi special court and placed under ED custody until August 28. He is implicated in the birfa IT case alongside five others previously arrested: Manideep Mago, Sanjay Sethi, Mayank Dang, Tushar Dang, and Jaspreet Singh Bagga.
• Investigations revealed an organized syndicate managed by the Dang brothers comprising Indian importers/traders, cash handlers, international “hawala” agents, local conduit firms in India and abroad (including China), Chinese suppliers/manufacturers, and warehouses in major Chinese cities.
• Under-invoicing of goods imported by the syndicate led to compensatory payments sent abroad via bogus invoices for services like crypto mining server leases or education software; no such services were provided.
• Payments were funneled to foreign companies controlled by accused individuals before reaching Chinese exporters supplying goods to India.
• ED alleged cash transactions between Rajdeep Sharma and Tushar Dang via “hawala” channels. these funds were layered through various bank accounts before remittance abroad for compensatory payments linked to import transactions.

Indian Opinion Analysis:

This case underscores significant concerns about vulnerabilities within India’s trade and financial systems that enable large-scale illicit activities such as under-invoicing of imports and illegal foreign remittances. The involvement of organized syndicates spanning multiple entities-including manufacturers/exporters from China-points to systemic loopholes affecting India’s economic integrity. Moreover, the use of forged invoices tied to non-existent services raises alarms about misuse of banking channels for fraudulent activities.

For India’s economy rooted heavily in global trade partnerships like with China/Hong Kong counterparts-as well addressing money laundering leaks-Strengthened Import/trade operational monitoring frameworks may curb spillover/joint implications.+ done