Enforcement Directorate (ED) is reportedly probing illegal foreign exchange remittances amounting to Rs 50,000 crore in line with its scrutiny over transactions by fintech firms.
According to a report by the Economic Times, the firms allegedly fabricated transactions such as importing services like software, exporting from special economic zones, offering cloud computing services, and leasing GPU server space to facilitate the movement of funds.
As per sources cited in the report, bank officials are suspected of "leaking out" information about the ED probe to the accused. Last week, the ED searched the home of Manideep Mago and his company, Birfa IT Services. Mago is accused of illegal transactions in cryptocurrencies and transferring over Rs 3,000 crore to Canada and Hong Kong. The Delhi Crime Branch has already filed an FIR and arrested Mago and his accomplice, Sanjay Sethi.
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Sources mentioned in the report also added that the law enforcement agency had found some "suspicious" dealings involving cryptocurrencies at Birfa IT Services in Delhi, after receiving the tip. They discovered that the company sold crypto assets valued at Rs 1,850 crore and turned them into cash.
The company reportedly deposited the majority part of the cash, which was then used for fraudulent outward remittances to Hong Kong and Canada.
The ED is also looking into the involvement of multiple bank officials who supposedly helped Mago deposit large amounts of cash. Mago declared this cash in his income-tax returns "after showing bogus expenditure and made foreign remittances."
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As per the ED's FEMA investigation, these funds were then redirected to unidentified beneficiaries. Mago and his employees gathered cash from hawala operators in Delhi and systematically sent it overseas.
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