ED Raids in Delhi and Kolkata Lead to Seizure of ₹47 Lakh in Software Import Scam

New Delhi, Kolkata, November 2 (Daily Kiran) : The Enforcement Directorate (ED) has conducted raids at seven locations in New Delhi and Kolkata as part of an investigation into a software import scam involving the illegal transfer of funds abroad. During these operations, the agency seized ₹47 lakh in cash along with foreign currency.

This action was initiated by the ED’s Visakhapatnam sub-zonal office under the Prevention of Money Laundering Act (PMLA) of 2002. Preliminary estimates suggest that the proceeds of crime in this case could amount to approximately ₹1,500 crore.

In addition to the cash, the ED recovered $5,900, 2,200 UAE dirhams, and 5,600 Chinese yuan. A significant number of incriminating documents, records, property papers, and digital devices were also confiscated. The agency stated that these items provide evidence of illegal transactions and the use of shell companies to transfer money overseas.

The investigation began based on a complaint filed by the Income Tax Department at the MVP police station in Visakhapatnam. The ED has alleged that individuals, including one Vaddi Mahesh, created fake documents to facilitate the transfer of funds to various foreign entities using different banks.

The inquiry revealed that Vaddi Mahesh, along with his father and associates, established several companies in Kolkata and opened bank accounts in their names. Through these accounts, ₹569.03 crore was sent to five companies in Singapore, Hong Kong, and China under the guise of purchasing customized software.

However, according to the ED, the banks were provided with fake invoices, and no software was actually imported in return for these payments.

Further investigation uncovered that Bhimendra Kumar Goyal, who has been detained three times under the COFEPOSA act, allegedly smuggled cosmetic products, electronics, and textile materials into India to evade customs duties. The agency claims he coordinated with Vaddi Mahesh to transfer the proceeds from these smuggling operations abroad and disguise them as legitimate funds.

From 2014 to 2017, Vaddi Mahesh allegedly received funds from various sources into the bank accounts of his shell companies, which he then transferred abroad under Goyal’s direction. This money was deposited in inactive or newly established companies in Singapore and Hong Kong, managed by designated directors. Eventually, these funds were routed to accounts belonging to companies linked to Goyal and his family, such as Swiss Fox PTE Limited and Bhav Technology China Limited, to make the illicit money appear legitimate.

The investigation also revealed that Goyal, in collaboration with Pawan Kumar Ralli, operated fake firms named Mehak Overseas, Karan Overseas, and Geet Enterprises in New Delhi using fictitious names and addresses.

According to the ED, part of the illegal funds was sent abroad through Village Handicraft Export, with Eagle Mount Trading PTE Limited in Singapore identified as the recipient. The beneficial ownership of this company is reportedly held by Ashish Todi.

The investigation is ongoing.