Hawala racket: Raids in Delhi, Mumbai; `29 lakh cash seized

New Delhi: The Enforcement Directorate (ED) raided multiple locations in Delhi and Mumbai in connection with a Rs 700 crore Dubai-linked hawala trade racket and seized Rs 29 lakh cash and a number of documents, the agency said Tuesday. The searches, that began on Monday at 11 locations in the two metro cities, ended Tuesday, it said. The raids, it said, were linked to the businesses and alleged illegal financial transactions linked to a Dubai-based hawala operator Pankaj Kapur. He is already being probed by the central probe agency in a hawala case to the tune of Rs 3,700 crore.

"Preliminary enquiry revealed that hawala transactions are being carried by one of his (Kapur's) Indian company-- Ms Radhika Gems Pvt Ltd -- by collecting money in cash in India and transferring the same to the companies abroad against the payment of import of diamonds. "These overseas companies have been prima facie found to be owned and controlled by Pankaj Kapur only," the Enforcement Directorate said in a statement.

It said searches were also conducted at the offices of two Chartered Accountants and a custom house agent who helped Kapur in creating web of shell firms/companies, managing the books of accounts and filing import documents with the Customs department.