ED raids 1000 shell companies across 16 states

| Updated: Apr 01, 2017 22:11 IST

New Delhi [India], Apr. 1 (ANI): The Enforcement Directorate (ED) is raiding 100 locations of 1000 shell companies spread out across 16 states across the country, which are under suspicion of laundering money and also helping noted politicians convert black money into white. The ED is raiding 100 locations and 300 offices of shell companies, during which more than 1000 shell companies were found, and in Mumbai alone 700 shell companies were found out. <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">ED searches at shell companies related to Y S Jagan Reddy Rajeshwar Exports & others to unearth their modus operandi</p>&mdash; ED (@dir_ed) <a href="https://twitter.com/dir_ed/status/848109694430392320">April 1, 2017</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> Nationwide searches are being conducted under the Foreign Exchange Management Act (FEMA) and Prevention of Money Laundering Act (PMLA) in 16 states. <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">ED conducted searches at shell companies & it&#39;s operators used by Yadav Singh of NOIDA corruption scam to convert his illegal wealth</p>&mdash; ED (@dir_ed) <a href="https://twitter.com/dir_ed/status/848104783575756801">April 1, 2017</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> The searches exposed Mumbai operator running 700 shell companies with 20 dummy directors, which had converted Rs 46.7 crore for Nationalist Congress Party (NCP) leader Chhagan Bhujbal. The ED is searching the shell companies used in National Rural Health Mission (NRHM) scam to launder proceeds of crime. This comes as one of the biggest crackdowns by the probing agency with over 100 shell companies under its radar. Shell companies act as front entities for those persons carrying out transactions and operating companies who don't want their identity to be revealed. They are also a non-trading company used as a vehicle for various financial maneuvers or kept dormant for future use in some other capacity. (ANI)

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