APMC accounts used to siphon off ₹198cr cash

Accounts typically used for agricultural trade misused to launder illicit funds

- Ashish Singh

Suspects in the Malegaon money laundering case exploited Agricultural Produce Market Committee (APMC) accounts to siphon off more than Rs198 crore, according to the Enforcement Directorate's prosecution complaint (PC).

The ED's investigation reveals how the accounts, typically used for agricultural trade, were allegedly misused to launder illicit funds generated from cyber fraud and online betting apps.

According to the ED, the accused capitalized on the vulnerabilities in the APMC system by setting up a network of shell entities. Over three to four months, they withdrew Rs198 crore in cash, disguising these transactions as legitimate agricultural trade.

The PC stated that Seraj Ahmed, the key accused who is now in judicial custody, allegedly opened 19 shell APMC firms and corresponding bank accounts at Malegaon Nashik Merchant Cooperative Bank (NAMCO) and Bank of Maharashtra by luring victims with promises of jobs and financial gains at Malegaon APMC. The accounts opened by using the documents of these victims received deposits worth Rs158 crore from online gaming and betting apps.

The ED alleged that Ahmed withdrew Rs14.84 crore and transferred it to a hawala operator in Mumbai, Milankumar Patel, following instructions from the absconding mastermind, Mehmood Abdul Samad Bhagad, alias 'Challenger King'.