ED arrests CA in money laundering probe involving IFFCO MD

New Delhi, July 13 The Enforcement Directorate (ED) has arrested Alok Kumar Agarwal, a Delhi-based Chartered Accountant, in connection with a money laundering case involving IFFCO MD and CEO U.S. Awasthi.

An ED official said that Agarwal was arrested on Monday and after a court sent him to 10 days' agency custody.

The ED initiated a case of money laundering on the basis of FIR registered by the CBI in May this year under several sections of the IPC and PC Act against Awasthi and others for criminal conspiracy, cheating and criminal misconduct.

The official said that Agarwal is Chairman of Alankit Group, which is engaged in providing various services including Equity Broking or Commodity Broking, Depository Participant, GST Suvidha Centre, PAN Centre and TIN Facilitation Centre, among others.

He said that the allegations against the accused include routing of proceeds of crime involved in the impugned investigations through his group entities based in India and Dubai.

"Agarwal facilitated cross border transfer of proceeds of crime to the tune of Rs 40 crore identified so far to India from Dubai for a monetary consideration," the official said.

The official said that probe is underway to identify all the other beneficiaries of the illegal money exchange module (Hawala) being operated by him.

Earlier, the ED had arrested RJD Rajya Sabha MP A.D. Singh in this case and he continues to be in judicial custody after rejection of his bail application.

The official said that the probe conducted so far have revealed that a part of the proceeds of crime has been received by him through this module.