ED crackdown on shell companies: What was unearthed

The Enforcement Directorate cracked down on at least 1,000 shell companies on Saturday. Companies allegedly linked to Y Jagan Mohan Reddy, Chagan Bhujbal and former BSP leader Babu Singh Kushwaha faced the ED's music. The raids were conducted on the basis of the money trail found in various cases booked under the Foreign Exchange Management Act and Prevention of Money Laundering Act.

ED sources say that they have recovered several documents and incriminating evidence. On the basis of this further investigations will be conducted, ED officials informed. Here are the key factors about the raids.

In Kolkata the ED found at least 50 companies that were registered under the same address. On questioning the landlord, he said that he had rented the premises to a man three years back. Within three months of renting out the property the person vanished.

In Delhi the ED found at the premises of a chartered account, S Gupta that he had set up 200 shell companies. He had also given accommodation entries to several people in Uttar Pradesh including politicians.

In Mumbai, one Jagadish Prasad admitted that he had floated 700 shell companies with 20 dummy directors.

In several cases the ED found that large sums of money had been remitted to foreign accounts through these shell companies. ED officials estimate that in all a sum of nearly Rs 11,000 crore may have been remitted.

In one case the ED found that a shell company had exported carpets to its sister concern abroad. The proceeds were never realised.

OneIndia News