Mumbai’s Economic Offences Wing (EOW) has busted a major international money laundering racket involving over Rs 100 crore. Based on a complaint filed by Assistant Police Inspector Sarang Shivaji Chavan, a case of cheating and criminal conspiracy has been registered against Madanlal Jain and several bank officials.
According to FIR, the accused created fake companies in the names of poor and unsuspecting individuals and siphoned off more than Rs 100 crore, causing significant losses to the government.
The probe was initiated following inputs received from the Enforcement Directorate (ED). During the preliminary investigation, it was revealed that in 2010, the main accused Madanlal Jain allegedly lured two individuals — Mangelal Modiram Dave and Naresh Mangelal Dave — and misused their signatures. The duo were reportedly paid Rs 10,000 per month, and dozens of fake companies and bank accounts were opened in their names without their full knowledge.
Police said several shell companies, including Geet Exim Pvt. Ltd., Vibha Impex and Pehal Impex, were floated as part of the racket. Though these firms were shown to be operating from Surat in Gujarat, no actual business activities were conducted at the listed addresses.
Investigators have also alleged the involvement of certain bank officials, who allegedly facilitated the opening of accounts without completing mandatory Know Your Customer (KYC) procedures and physical verification. Fake invoices worth crores of rupees were allegedly generated in the name of diamond trading and road construction projects to legitimise illegal transactions.
To layer and divert the funds, the accused reportedly used circular transactions before eventually transferring large sums of money overseas.
The Mumbai Police have registered an FIR against the main accused Madanlal Jain, the shell companies involved and concerned bank officials under various sections of the Indian Penal Code, including Section 409 (criminal breach of trust by a public servant or banker), Sections 465, 467, 468 and 471 (forgery and use of forged documents), and Section 120B (criminal conspiracy).
A senior police officer said, “The accused have defrauded the government of over Rs 100 crore. We are closely examining the role of bank officials who allowed these accounts to be opened without proper verification.”
Further investigation in the case is underway.