The Enforcement Directorate (ED) has filed a chargesheet in a money laundering case against art gallery owner Rajesh Rajpal and lawyer Vishwang Desai, alleging their involvement in a cartel that sold fake artworks. Rajpal is accused of receiving ₹15.7 crore from the sale of counterfeit paintings, while Desai is alleged to have acted as the intermediary, curating art options, negotiating terms, and vouching for the authenticity of the works.
The ED's case is based on a cheating case initially registered at the Tardeo police station in 2024. The First Information Report (FIR) stated that Puneet Bhatia was defrauded of ₹17.9 crore through the sale of fake paintings along with forged certificates. The police had initially filed a closure report, terming the dispute as civil in nature because the accused had returned ₹2.2 crore to the complainant. However, a magistrate's court rejected this report and ordered further investigation against Rajpal and Desai.
The ED's investigation revealed that the accused prepared forged certificates of authenticity and provenance for the paintings. This included an unsigned certificate for a painting purportedly by F.N. Souza. By creating and circulating fabricated documents, Desai allegedly enabled Rajpal to misrepresent the forged artworks as genuine, inducing the complainant to pay ₹15.7 crore through banking channels. Subsequently, some of this amount was withdrawn, with the recipient and use of the funds remaining unclear. The ED asserts that Desai's role extended beyond generating the proceeds of crime to projecting them as untainted property in Rajpal's hands.
In March 2024, the ED conducted searches at six locations in Mumbai under the Prevention of Money Laundering Act (PMLA). During these searches, digital devices and incriminating documents were seized, highlighting the operations of the cartel, including trading in fake artwork, generating fake authenticity and provenance certificates, and transferring money through cash. The ED also unearthed a cartel allegedly involving a prominent art gallery in South Mumbai, corporate lawyers, and bullion traders. The cartel purportedly passed off fake artwork of original paintings as genuine, including works by "national treasures" like Jamini Roy, M.F. Husain, F.N. Souza, Jahangir Sabavala, S.H. Raza, N.S. Bendre, and Ram Kumar.
The investigation revealed that the cartel operated with the help of individuals falsely claiming links with royal kingdoms, antique art collectors, and small-time artists who created fake replicas. These replicas were then presented as authentic with the aid of fake certificates of authenticity, provenance, and affidavits of ownership. The money trail indicated that amounts received were sent by domestic "hawala" operators to cartel members as commission or in exchange for free or discounted artwork. Cash generated from the sale of fake artwork was allegedly used to purchase antiques in collusion with bullion traders, which were then sold at auctions.
In a similar case in the United States, the owner of a Miami art gallery, Leslie Howard Roberts, faced charges related to the sale of fake Andy Warhol artwork. Roberts and two others were accused of defrauding clients by selling artwork they claimed were original pieces acquired directly from the Andy Warhol Foundation for the Visual Arts. The indictment alleged that Roberts used fraudulent AWF identification numbers and fake stamps to create the appearance of authenticity.
