Bullion dealer nabbed for money laundering after note ban

Mumbai, Sep 22 (IANS) A leading bullion dealer, Chandrakant Narsidas Patel of Messrs. Pushpak Bullions Pvt. Ltd. here was arrested by the Enforcement Directorate (ED) for alleged money laundering post the demonetization in November last year, officials said here on Friday.

According to ED, cash deposits of Rs 84.5 crore were found in the account of one Messrs. Pihu Gold and Messrs. Satnam Jewels within 41 days after demonetization of Rs 1,000 and Rs 500 notes on November 8 last year.

These funds were later transferred to another account of Pushpak Bullions and used to purchase 258 kg gold bullion.

Earlier, the Pushpak Bullion's bank account was already declared as a 'non-performing asset' by the concerned bank.

Investigations by the ED revealed that the involved companies did not have matching economic wherewithal to enter into such transactions and subsequently layering them through gold bullion investments.

Patel has been found to be the mastermind of this money-laundering scam and was arrested under the Prevention of Money Laundering Act, while further probe is underway.

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