Intl trade fraud bust in Chennai accounts for 14% of ED convictions

AN investigation by the Enforcement Directorate (ED) into a money-laundering scam where at least ₹120 crore worth US dollars were sent to Hong Kong through multiple shady accounts with two Chennai banks has given the agency six of its 42 all-India Prevention of Money Laundering Act (PMLA) convictions till date.

- SIDDHARTH PRABHAKAR

While the first conviction was in 2019, the latest of the six was obtained by a special PMLA Chennai court in September 2024. A few more related cases are still at the trial stage.

The probe is significant for multiple reasons; firstly, ED got the convictions even before investigation of the predicate offences of forgery, impersonation and cheating were completed by the Greater Chennai Police and CBI. Secondly, one of those convicted by the PMLA court was not even an accused in the predicate offence booked by Chennai police.

During trial, ED not only proved money laundering, but produced evidence to also establish the charges of forgery, impersonation and cheating. These points passed the judicial test even in the Madras High Court, establishing PMLA as a standalone offence.

This led to the cases emerging as a case study across India and in meetings of the Financial Action Task Force (FATF), sources said.