Ahmedabad has emerged as a key link in two Enforcement Directorate (ED) investigations into separate financial crime networks involving cyber fraud, illegal betting, bank fraud, shell companies and alleged manipulation of insolvency proceedings.
In the first case, the ED’s Mumbai Zonal Office filed its third supplementary prosecution complaint against Mehmood Abdul Samad Bhagad, alias ‘Challenger King’, in an alleged ₹157-crore mule account network. The complaint was filed before the Special Court (PMLA), Mumbai, on October 1.
According to the ED, an organised syndicate used stolen identities to open mule bank accounts and route money linked to cyber fraud, illegal online gaming and betting. The investigation began after more than ₹100 crore was deposited into newly opened accounts with Nashik Merchant Co-operative Bank in Malegaon.
The second case relates to the ED’s investigation into the Tayal Group’s alleged ₹820.86-crore bank fraud and money laundering case. As part of the probe, the agency searched 12 locations in Ahmedabad and Mumbai on September 30 and froze 215 bank accounts linked to the accused entities.
The two investigations have put the spotlight on Ahmedabad’s alleged role in complex financial crime networks involving the movement and laundering of large sums of money.