Enforcement Directorate Raids Surat Jeweller in Major Hawala Transaction Case
The Indian Enforcement Directorate (ED) has conducted a search operation at Shrenu Jewellers in Surat's SEZ following suspicions of a large-scale hawala scam tied to export-import transactions.
Alex Carter
- 2023-12-27
- Updated 11:11 PM ET
(NewsNibs) - Subsequent searches were carried out by the ED at the offices of the promoters in various locations, including Ahmedabad, Surat, Assam, and the UAE. The ED's probe revealed that Shrenu Jewellers allegedly funneled ₹2,284 crore overseas using hawala channels through shell companies. Bank accounts linked to the entities with an accumulative balance of ₹1.14 crore have been frozen as part of the investigation. The Directorate suspects these transactions were made under the pretext of export-import operations by the jewellery company.
Investigation Intensifies
The extensive investigation has involved collaboration with the Forensic Science Laboratory (FSL) and other agencies to scrutinize over ₹5,000 crore worth of transactions through numerous shell companies. ED's focus on Shrenu Jewellers and its associated units in Surat's Special Economic Zone comes after a period of two years within which transactions amounting to ₹3,700 crore were reported. The current operations are part of a wider clampdown on suspected hawala transactions in the name of export-import, with Surat SEZ being a previous site for similar incidents.
Wider Implications and Related Scams
Alongside the raids on Shrenu Jewellers, the Enforcement Directorate cited the provisions of the Foreign Exchange Management Act of 1999 in its search of Shrenu Jewellers LLP, its promoter, Avadh Harshad Yagnik, Vansh Marketing, Aashiq Patel, and affiliates across multiple cities and the UAE for their alleged involvement in significant foreign hundi transactions. In a related discovery, Vesu Police have registered a case against eight people pertaining to the fraudulent sale of a tobacco merchant's store in Surat using counterfeit documentation, revealing a scam worth ₹43 lakhs. This activity came to light after fraudulent transactions worth two lakhs were detected in an account opened under a female doctor's name.
ED's Continued Vigilance
Continuing their vigilance against financial fraud, ED stresses the magnitude of the alleged scam involving Shrenu Jewels LLP, which operates within Surat SEZ, focused on importing and exporting gems and jewelry. The sheer volume of operations made by the company over the past two years paints a worrying picture of the potential abuse of import-export channels. Meanwhile, local police are addressing the intricate web of deception involving fake credentials in other criminal activities within Surat, calling attention to the need for tighter regulations and enforcement in financial and commercial practices.
