ED arrests Bhajiyawala’s son in Gujarat

Ahmedabad, Jan 20 (IANS) The Enforcement Directorate on Friday arrested Jignesh Bhajiyawala, son of Surat-based snack seller-turned-financier Kishore Bhajiyawala, under the Prevention of Money Laundering Act (PMLA) on the charge of exchanging scrapped currency notes with new ones.

Jignesh, who was brought to Ahmedabad and presented before a special ED court, was sent in judicial custody. He will be presented in court again on Saturday.

The Central Bureau of Investigation (CBI) had on December 24 lodged an FIR against Kishore and his sons Jignesh and Vilas, as well as the bank manager of a local cooperative bank, in connection with the seizure of Rs 1.05 crore in new currency notes during an Income Tax raid on their premises.

The Income Tax Department had seized cash, valuables and several property-related documents from the premises of Bhajiyawala.

Officials suspect many more 'benami' investments and bank accounts of the Bhajiyawala family as it found several lockers and seized over nine kg of gold ornaments and bullion worth over Rs 3 crore. Several bank accounts too were linked to the family.

Kishore, who once sold 'bhajiya' (snacks) and tea at a tin stall in Udhna industrial suburb of Surat, came under the spotlight after income tax officials raided his premises when reports on his net worth between Rs 600 crore and Rs 2,000 crore began doing the rounds.

While the Enforcement Directorate has indicated it could arrest Kishore and his other son Vilas, Jignesh claimed his family had done nothing wrong except exchanging the old notes with new ones.

"The bank officials cooperated with us and lay a red carpet for us. It was childish of us to have exchanged currency in such a large number. We have done nothing wrong as all the properties have been registered in our names and have all the requisite documents related to that," Vilas told reporters.