New Delhi [India], June 24 : The Directorate of Enforcement (ED) has arrested a Nagpur man in connection with its money laundering investigation linked to a case of smuggling of foreign betel nuts through the India-Myanmar border by evading customs duty, officials said on Friday.
According to the ED, Wasim Bawla was arrested on June 22, under the provisions of the Prevention of Money Laundering Act, 2002 in connection with an ongoing investigation into the smuggling of foreign-origin betel nuts via Indo Myanmar Border by shell entities based in the North-East without payment of customs duty, thereby, causing loss to the Government.
ED initiated a money laundering investigation on the basis of an FIR registered by CBI, ACB, Nagpur. During the preliminary investigation, it is found that DRI had conducted investigation against various traders in Nagpur who were procuring foreign-origin betel nuts.
ED conducted searches at the premises of various persons and during the searches, various incriminating documents and electronic devices were also seized.
ED investigation revealed that large amounts were transferred to a few Assam-based parties which were ultimately withdrawn in cash and were suspected to be used for the purchase of smuggled foreign-origin betel nuts.
"The foreign-origin betel nuts were transported to Nagpur by fabricating domestic invoices, transportation bills etc. Investigation revealed that Wasim Bawla was actively involved in smuggling of foreign origin betel nuts through his active association with traders from Assam, transporters, warehouse owners and shell entities which lent bogus invoices to facilitate the sale purchase of betel nuts in Nagpur region," officials of ED said.
The officials added that Wasim Bawla had made all the efforts to evade ED investigation by changing phones frequently, not responding to ED's summons, and not participating in the search proceedings despite being in Nagpur.
On production before the Special PMLA Court Mumbai, Bawla has been sent to ED Custody for 8 days, till June 30.
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