ED arrests two importers in illegal foreign remittance transfer case

Foreign remittances worth ₹4,817 crore were allegedly sent illegally to make compensatory payments for under-invoiced imports from China and Hong Kong

The Enforcement Directorate (ED) has arrested two Delhi-based importers in a case involving illegal transfer of foreign remittances worth ₹4,817 crore against forged invoices.

The accused have been identified as Mayank Dang and his brother Tushar Dang. They allegedly set up the network through which foreign remittances were sent illegally to make compensatory payments for under-invoiced imports made from China and Hong Kong.

In the same case, the agency had earlier arrested Manideep Mago and Sanjay Sethi.

The ED investigation revealed that “the Dang brothers had made a well organised syndicate comprising a big pool of Indian importers and traders, cash handlers, International ‘hawala’ agents, local angandiya (money/valuable courier) firms, numerous Chinese manufacturers, and suppliers and a dedicated chain of warehouses in several major Chinese cities”.

According to the ED, the Dang family also operates and controls several foreign entities in collusion with a key Chinese member of the syndicate known as Mr. King, who after procuring goods from numerous Chinese manufacturers and suppliers, and accumulating the same in various godowns and warehouses, exports them to the firms controlled and owned by the Dang family.  

It is alleged that the goods imported by the Dang brothers were highly under-invoiced, and the compensatory payments were remitted abroad through accused Manideep Mago and Sanjay Sethi.

“The remittances made by Manideep Mago and Sanjay Sethi were made against bogus invoices raised for online lease of servers for crypto mining, education software packages, lease of Bare Metal Servers, etc. However investigations have revealed that no such services were actually provided and the remittances were made to foreign companies controlled by Manideep Mago and his accomplices, from where the payments were made to Chinese companies engaged in the export of various products to India,” the agency said.

The ED alleged that the office of the Dang brothers and the premises of their clients were a regular pick-up point for cash by the employees of the accused Manideep Mago and Sanjay Sethi. “This cash was layered through various bank accounts operated by the accused persons before being remitted abroad to make payments to Chinese exporters,” it said.

The Dang brothers have also been accused of destroying evidence by asking their employees to get rid of their digital devices after the ED initiated the probe.

Published - November 27, 2024 04:36 pm IST