The Enforcement Directorate (ED) said on Monday that it conducted searches in Ahmedabad in connection with FEMA violations by VIPS group of companies and Global Affiliate Business, managed and controlled by Vinod Khute and his relatives.
The search operation resulted in the seizure of cash amounting to Rs 2 crore and a bank balance of Rs 10.38 crore.
In the instant money laundering case, the ED has seized Rs 3.14 Crore in cash and frozen a bank balance of Rs. 28.60 crore.
The ED initiated action under Foreign Exchange Management Act (FEMA) against Vinod Khute and others, who are presently residing in Dubai and are the masterminds of various illegal trades, crypto exchanges, wallet services, and forex trading through Kana Capital Limited.
The proceeds of crime were being siphoned off through hawala channels to various foreign countries.
“During investigation, it was revealed that the money collected from various persons and entities was deposited in various shell companies and firms with dummy directors and proprietors. Subsequently, the funds were routed to multiple shell companies located in Ahmedabad and Pune.
“Khute’s modus operandi involved collecting funds from various investors in shell companies and providing them with an equal balance in US dollar on the platform of Kana Capital Limited for forex and commodity trading,” the ED said.
The investigation also revealed that the collected funds were transferred to Dubai through various hawala operators, who were provided RTGS entries in their shell companies in exchange for cash.
The trading platform of Kana Capital, in active connivance with Vinod Khute and VIPS group of companies, provided solutions to various clients for trading in forex and commodities at four international stock markets.
They lured the clients by offering significant returns and conducted weekly training programmes for them virtually.
Based on the money trail, the ED had already frozen a sum of Rs 17.22 crore in the form of bank balances under the provisions of FEMA.
Now, the ED has seized Rs 2 crore in cash and frozen a bank balance of Rs 10.38 crore, resulting in total seizure of Rs 31.74 crore.
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