The Enforcement Directorate has unearthed a money laundering racket for which funds were rotated among eight companies and close to Rs. 8,000 crore was created by the masterminds as credits in their accounts, with the seed money of just Rs. 6.87 crore.
The same money was rotated over 100 times in each company within 12 days, using cheques. There was no movement of cash.
The infused money of Rs. 6.87 crore was ultimately returned to the companies controlled and managed by main accused Surendra and Virendra Jain. The accounts were closed soon to evade detection. The Jains were helping people allegedly launder unaccounted income by receiving the money in cash via mediators and then converting it into share premium transactions in the beneficiaries’ companies. In the process, they earned a certain percentage of the amount.
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