Probe Agency Attaches Assets Worth Rs 11.20 Crore Of Carpet Merchant

The Enforcement Directorate (ED) has attached various Delhi-based land and flats valued at Rs 11.20 crore belonging to entities owned by a carpet merchant Sajjan Kumar, the agency said on Monday.

ED’s Delhi Zonal Office attached these properties under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

ED initiated an investigation on the basis of a prosecution complaint filed by the Directorate of Revenue Intelligence (DRI) against Kumar and various other accused persons and entities.

As per the prosecution complaint filed by DRI, undue export incentives were availed by the accused on exporting carpets, garments and fabrics to countries like Saudi Arabia, Malaysia, South Africa and Afghanistan at highly over-invoiced values.

Mr Kumar was identified as the main person behind this racket, which caused a loss of Rs 32.25 crore to the government exchequer, said the ED.

The ED investigation revealed that the proceeds of the crime were utilised by Mr Kumar for investments in various assets.

The agency’s investigation further revealed that Mr Kumar and his associates devised elaborate schemes through multiple entities to ensure that the duty drawback received from the government is not traced back to him.

The amounts received were transferred immediately to various dummy entities, said the ED, adding “The amounts so transferred were either withdrawn in cash or were invested in various properties after multiple layering of funds. The amount obtained from duty drawback was also utilised for real estate business and construction of flats. Flats built using proceeds of crime were usually sold in cash.”

ED had earlier conducted searches at multiple locations on September 24, 2021, and several digital evidence were seized.

Thereafter, the main accused, Kumar was arrested on September 25, 202, and properties worth approximately Rs 4.43 crore were attached following two provisional orders dated October 13, 2021 and August 10, 2022.

A Prosecution Complaint was filed against five accused before the Special PMLA Court, New Delhi on November 23, 2021. The cognizance of the same was taken on December 3, 2021.