India's Enforcement Directorate (ED) has arrested three people and seized diamonds, gold and cash after it searched a few companies based in Gujarat as part of a money laundering probe against a 'Chinese-controlled money lending app', say media reports.
The federal agency said 14 premises of Sagar Diamonds Limited, RHC Global Exports Limited, their director Vaibhav Dipak Shah and their associates located in Surat SEZ (special economic zone), Ahmedabad and Mumbai were searched.
The investigation pertains to a criminal case, filed under the Prevention of Money Laundering Act, against the Power Bank app (mobile application) which is alleged to have duped thousands of common people.
The ED said this money lending app was managed by Chinese nationals in connivance with their associates in India, including Vaibhav Dipak Shah and Sagar Diamond Ltd. The proceeds of the crime of the alleged fraud perpetrated by the app were possessed by Sagar Diamonds, a BSE-listed company and others, it claimed.
A number of manufacturing units of the entities at Surat SEZ were found involved in an exorbitant overvaluation of import/export of diamonds, gemstones and other precious metals and siphoning of funds abroad in the garb of bogus imports. Synthetic ruby of insignificant value was shown as a precious gem, the agency said.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
The federal agency said 14 premises of Sagar Diamonds Limited, RHC Global Exports Limited, their director Vaibhav Dipak Shah and their associates located in Surat SEZ (special economic zone), Ahmedabad and Mumbai were searched.
The investigation pertains to a criminal case, filed under the Prevention of Money Laundering Act, against the Power Bank app (mobile application) which is alleged to have duped thousands of common people.
The ED said this money lending app was managed by Chinese nationals in connivance with their associates in India, including Vaibhav Dipak Shah and Sagar Diamond Ltd. The proceeds of the crime of the alleged fraud perpetrated by the app were possessed by Sagar Diamonds, a BSE-listed company and others, it claimed.
A number of manufacturing units of the entities at Surat SEZ were found involved in an exorbitant overvaluation of import/export of diamonds, gemstones and other precious metals and siphoning of funds abroad in the garb of bogus imports. Synthetic ruby of insignificant value was shown as a precious gem, the agency said.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished
