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255 Malegaon Bank Accounts Linked to Money Laundering and Terror Funding

The Malegaon money laundering case has taken a significant turn as the Enforcement Directorate (ED) investigates 255 bank accounts tied to terror funding and political connections. These accounts, described as the “real Kuber” of the operation, are at the center of an elaborate scheme intertwining illicit financial activities with political agendas.

The ED’s inquiry has unveiled a complex network of transactions designed to obscure the origins of funds. The accounts were allegedly opened using the names of unsuspecting individuals, particularly Hindu youths, and used to channel massive sums of money. These funds are suspected to be linked to terror financing and political entities involved in inflammatory activities.

Preliminary investigations revealed that a staggering Rs 379 crore was withdrawn from these accounts. The ED suspects the funds were utilized for terror-related activities, such as inciting unrest during assembly elections. Allegedly, some of this money was distributed to fundamentalist groups to fuel religious propaganda and orchestrate conflicts between Hindu and Muslim communities.

An official from the ED, who spoke anonymously due to the sensitive nature of the case, stated, “The investigation is at a critical stage, and we are scrutinizing individuals linked to political parties.” However, the agency has withheld names due to ongoing inquiries.

Fraudulent Transactions and International Connections

The investigation has identified alarming patterns, including accounts registered under non-existent businesses and inflated transaction volumes that do not align with legitimate activities. In one instance, 19 accounts in Nashik Merchant Cooperative Bank and Bank of Maharashtra were found to have received Rs 114 crore. These accounts were allegedly opened with falsified documents by Siraj Memon, one of the accused.

Memon’s involvement was reportedly under the directives of the masterminds: Nagani Akram Mohammad Shafi and Mehmood Bhagad, also known as “Challenger King” or “MD.” Bhagad is believed to have fled the country, complicating the investigation.

Funds amounting to Rs 14.60 crore were withdrawn by Memon and sent to Mumbai through angadia channels—a traditional hawala network. A significant portion of this amount was later transferred to Dubai. The ED suspects that Rs 100 crore was laundered through 21 shell company accounts based on instructions from the accused.

Further investigation revealed that Rs 7.5 crore from these operations was routed to five Dubai-based firms:

Smart Care General Trading LLC
Seven Seas International
Kobalt Trading
Surya IT Solution LLC
Premium Information Technology Limited Company

These firms, officially registered under Memon’s name, are believed to be controlled by Bhagad, who is linked to fundamentalist organizations. Bhagad’s role as the alleged architect of this laundering scheme underscores the international dimensions of the case.

The Role of Betting Platforms and Cryptocurrency

Interrogations of several account holders revealed connections to gambling and betting platforms. These accounts functioned as temporary holding stations for funds generated from illegal betting. The ED also detected unexplained cryptocurrency purchases, suggesting attempts to further obscure the money trail.

Accounts that initially appeared legitimate, often linked to charitable organizations, were later exposed as fronts for funneling illicit funds. Transactions in these accounts showed sudden surges in activity and were often inconsistent with their stated purposes.

The agency continues to examine these suspicious patterns, piecing together the broader network of individuals and organizations involved.

Conclusion: Unraveling the Malegaon Money Laundering Nexus

The ED’s investigation into the Malegaon money laundering case has revealed an intricate web of deceit, linking terror funding to political interests and international financial networks. With Rs 379 crore under scrutiny and key individuals like Mehmood Bhagad evading capture, the case highlights the challenges of combating organized financial crime.

While the ED has seized Rs 20 crore so far, a significant portion of the laundered funds remains unaccounted for. The agency’s ongoing efforts aim to trace these funds, bring the perpetrators to justice, and dismantle the networks enabling such activities.