Zaveri Bazaar raid: Firms had at least 8 shell companies, says ED

Mumbai: Two days after the Enforcement Directorate raided four firms in Zaveri Bazaar, investigators have revealed that each of the four companies had created at least eight shell companies to make transactions. Investigators added that each of these companies were registered under different shell bank accounts where money was deposited to be used by the bullion traders and convert them into gold bullions or precious metals.

Officials revealed that each of the shell companies had registered themselves as Mumbai-based companies. “They were all registered and shown to be located at various places in the city. Our officials, after investigating and verifying, found all of them to be fake and in some cases even non-existent,” said an official. The official revealed all of these firms had an account at various banks in the city. “We are also investigating and getting details about the bank accounts held by these firms,” he added.

The source added that initial investigation had shown that about Rs 69 crore was deposited in bank accounts of the bullion traders but further investigation had changed the amount.

”We think there are at least hundreds of crores deposited in the bank accounts used by the bullion traders. We are trying to follow the money trail and find where the money was eventually used and by whom,” said an official.

The officials explained that the shell companies acted as fronts for the bullion firms. “Those involved and especially after demonetisation those in possession of old money that they could not declare were aided by the bullion traders to convert the said money into precious metals especially gold bars,” said an officer. He added that there were some links found in Gujarat and a team had been sent there to conduct further probe.