Cash deposits in 3rd party accounts during demonetisation, ED attaches properties

New Delhi, Feb 18 The Enforcement Directorate (ED) on Friday said it has attached properties worth Rs 8.05 crore of Sarvodai Traders in a case pertaining to the transfer of large amounts of cash to third party accounts during demonetisation.

Huge cash deposits were made in certain accounts in Bank of India, GB Road branch, Gaya, Bihar, prior to and during demonetisation. It was detected by the financial intelligence agencies after which action was initiated against them.

These attached properties are in the name of Dhiraj Jain of Sarvodai Traders, and his wife Rinki Jain and their firms.

Earlier, the ED had attached properties worth Rs 14.44 crore in the case. With the fresh attachment, the total value of attachment in this case is now Rs 22.49 crore.

The ED official said that investigation was initiated under PMLA during the demonetisation period on the basis of the FIR registered with the Civil Lines Police Station in Gaya, Bihar.

During investigation, it was found that Motilal, a businessman of Gaya, in connivance with officials of the Bank of India, misused the bank accounts in the name of complainants Shashi Kumar, Rajesh Kumar, their firms, brothers, besides relatives and friends.

"Huge cash deposits worth Rs 44.80 crore were deposited illegally in these bank accounts which were further transferred to the bank accounts of persons/firms/entities without the knowledge and consent of the account holders. These illegal transfer of funds was on the basis of forging documents by Motilal on the direction of Dhiraj Jain, Pawan Kumar Jain, both businessmen of Gaya and Bimal Jain, a broker of Delhi, during the period from July 2016 to December, 2016," said the CBI official.

The ED official said that out of the said cash deposit, Rs 34.75 crore had been subsequently transferred to the bank accounts of fictitious and non-existent firms situated in Delhi.

The instant Provisional Attachment Order of Rs 8.05 crore includes immovable properties worth Rs 7.48 crore and movable properties worth Rs 57.14 lakhs (in the name of their firms and in the name of certain fictitious firms of Delhi).

Further investigation in the matter is underway.