The Enforcement Directorate (ED) has arrested Amit Agarwal in connection with a massive money laundering racket involving the transfer of black money out of India. Agarwal allegedly used shell companies to illegally send ₹697 crore to Hong Kong and Singapore.
The ED's investigation revealed that Agarwal allegedly sent the money under the guise of importing goods and services. However, these goods and services were never received, indicating that the transactions were fictitious. These shell companies were allegedly created for the sole purpose of laundering money and moving it out of the country.
Shell companies are entities that have no active business operations or significant assets. They are often used to obscure the true ownership of funds and can be used for illegal activities such as money laundering, tax evasion, and fraud.
The ED is continuing its investigation to uncover the full extent of the money laundering operation and identify all individuals and entities involved. The agency is also working to recover the laundered funds and bring those responsible to justice.
