International Hawala operator Naresh Jain arrested, sent to four days police remand

The case was registered on the complaint filed by ED wherein it is alleged that Naresh Jain and his associates are carrying out illegal activities.

New Delhi: The Delhi Police on Wednesday (December 9, 2020) said that it has arrested International Hawala operator Naresh Jain who was the mastermind of incorporating and operating several shell entities across various countries.

"Economic Offences Wing, Delhi Police has arrested the Transnational Hawala kingpin Naresh Jain for the offences of cheating, forgery and criminal conspiracy," said Delhi Police.

"Naresh Jain is on four days police remand," they added.

The case was registered on the complaint filed by Enforcement Directorate (ED) wherein it is alleged that Naresh Jain and his associates are carrying out illegal activities such as large scale money laundering, Hawala transactions, FEMA violations etc. Forged documents were used for getting dummy companies incorporated, opening and operating bank accounts and getting mobile connections for carrying out the sham transactions. 

"The syndicate has been operating offshore bank accounts opened in the name of shell companies in countries like Hong Kong, Singapore and Dubai etc. Based on the FIR registered by EOW, the Enforcement Directorate also initiated proceedings under the provisions of PMLA," said OP Mishra, Joint Commissioner of Police, Economic Offences Wing.

The investigation conducted so far has revealed that hundreds of trading and tour-travel companies and firms were incorporated in the name of persons recruited by him for the purpose of carrying out the circular trading, accommodation entries to show bogus turnover and Hawala transactions. 

During the course of the investigation, several persons who were recruited by the accused and his associates and who were appointed as Directors and proprietors in the shell entities have been examined. It has also emerged that the bogus entities were being run from offices opened at various obscure places in Vikas Puri, Pritam Pura, Janak Puri, Rohini etc with multiple entities registered at common addresses. 

The accused was carrying out the activities in conspiracy with the unscrupulous importers/exporters against hefty commissions. Such importers procure false 'Bills of Entries' from foreign exporters at very low rates to evade the import duties and pay the substantial balance amount towards such imports through the bank accounts of the shell companies being operated/controlled by Naresh Jain and his associates. 

Naresh Jain along with his accomplices hatched a criminal conspiracy to forge and fabricate documents in order to cause loss to the government exchequer by providing accommodation entries to the beneficiaries and indulging in illegal foreign exchange transactions.

Forged documents like identity proof, birth and education certificates, voter IDs, PAN cards and letterheads were prepared to incorporate entities, for operating bank accounts, facilitating bogus, over-invoiced and under-invoiced import and export transactions and rotation of funds through a web of shell companies. 

In collusion with his associates, he incorporated and operated around 450 Indian entities and over hundred foreign entities for carrying out the international Hawala operations and domestic operations of providing accommodation entries to co-conspirators i.e. the beneficiaries in lieu of his commission. Bank accounts were opened and operated in the name of such shell companies and firms for carrying out the layering of transactions in order to cover up the actual source and destination of the flow of funds.

The circulation of funds in the network of shell companies and firms were further destined to bogus Tour and Travel firms. The Tour & Travel firms further used to transfer funds for fictitious travellers through Foreign Outward Remittance against travel expenses to overseas companies being managed by the cartel being run by the accused Naresh Jain.

According to Delhi Police, Jain has an international criminal profile. In February 2007, he was arrested in Dubai for illegal Hawala activities. After getting bail, he fled from Dubai and reached India.

He was arrested by the Narcotics Control Bureau in May 2009 and the provisions of COFEPOSA were invoked against him. Thereafter, he was arrested by Enforcement Directorate in PMLA case.

He has also been on the radar of Serious Organised Crime Agency (SOCA), Britain, for his money laundering activities. As per information gathered, two Red Corner Notices have also been issued against Naresh Jain by INTERPOL on the request of NCB-Rome and Dubai authorities. 

Further investigation of the case is in progress.