The Directorate of Enforcement (ED) has attached movable and immovable properties totalling to Rs 1.12 crore of Hemanshu R Shah, bullion trader of Surat under the Prevention of Money Laundering Act, 2002 (PMLA) in the demonetization case.
The attached properties comprising immovable property totally valuing of Rs 94.12 lakhs consisting of Flat admeasuring 97.85 sq mtrs carpet area in Gyandeep Co-op Housing Society located at Surat and Commercial property having Shop admeasuring 1800 sq. ft located at Surat and movable property in the form of Fixed Deposit worth Rs 18 lakhs held in Bank account of Hemanshu R Shah’s firm namely M/s Shah M G Choksi with Surat People Coop Bank, Surat, said the ED statement.
Investigation under the PMLA was initiated on the basis of 2 FIRs registered by CBI against Maharshi Chokkas, Hemanshu Shah, and others on the complaints filed by Income Tax, Surat.
Hemanshu Shah was found to be operating the bank account of M/s Nirav & Co held in Surat People’s Co-op Bank, Main Branch, and had deposited demonetized Specified Bank Notes (SBNs) to the extent of Rs 36.17 crore during the demonetization period.
According to the ED, immediately after the deposits were made an amount of Rs 34.82 crore was transferred to the account of his firm, M/s Shah Maganlal Gulabchand Choksi. The probe also revealed that against the transfer of the funds to M/s Shah Maganlal Gulabchand Choksi, fake bills of Bullion sales were prepared without any actual trade of bullion.
Accused Hemanshu R Shah, in connivance with Maharshi Chokkas, used the photo and identity proof of one Nirav Rashmikant Shah of M/s Nirav & Co and illegally utilized the bank account for depositing demonetized SBNs to the extent of Rs 36.17 crore and channelized the unaccounted black money into the banking system, said the ED.
The Surat bullion trader further utilized an amount of Rs 2.20 crores out of the illegally routed demonetized notes through the account of M/s Nirav & Co on the identification of the proceeds of crime. The movable and immovable properties totalling Rs 1.12 crores of Hemanshu R Shah have been provisionally attached under the provisions of PMLA, the ED said.
Notably, the first FIR was registered under Section 120B r/w 467,468 & 471 of IPC and 13 (2) r/w 13 (1) (d) of PC Act 1988 against Maharshi Chokkas and others, while the second FIR was registered under Section 120B r/w 419, 467 & 471 of IPC and 13 (2) r/w 13 (1) (d) of PC Act 1988 against Maharshi Chokkas, Hemanshu Shah and unknown bank officers of Surat Peoples Co-Op Bank.