ED arrests Delhi-Based importers in connection with Birfa IT case under PMLA
New Delhi [India], November 27 (ANI): The Directorate of Enforcement (ED) has arrested Delhi-based importers Mayank Dang and Tushar Dang in connection with the Birfa IT case under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
According to the probe agency, the duo was presented before the Hon’ble Special Court in Dwarka, which remanded them to three days of ED custody until November 28, 2024.
The court’s order will keep Mayank Dang and Tushar Dang in ED custody until November 28, 2024. The ED is expected to question the duo to uncover more details related to the case.
The investigation is part of the ED’s ongoing crackdown on alleged money laundering networks involved in illicit financial activities.
Taking to its official handle on X, ED posted, “ED, Hqrs. The office arrested Delhi-based importers Mayank Dang and Tushar Dang on November 25, 2024, under the provisions of PMLA, 2002, in the Birfa IT Case. They were produced before the Hon’ble Special Court, Dwarka, which has remanded the accused to 3-day ED custody till November 28, 2024.”
The Dang Brothers were arrested on 25 November in the Birfa IT case. Earlier, two accused, Manideep Mago and Sanjay Sethi, had also been arrested by ED in the same case.
According to ED, they were produced before the Special Court, Dwarka, which has remanded the accused to 3-day ED custody till 28 November.
The case involves the illegal sending of foreign remittances worth Rs 4,817 crore against bogus and forged invoices for making compensatory payments for under-invoiced imports made from China and Hong Kong.
ED investigation revealed that the Dang Brothers had made a well-organised syndicate comprising a big pool of Indian importers and traders, cash handlers, international Hawala agents, local Angandiya firms, numerous Chinese manufacturers and suppliers and a dedicated chain of warehouses in several major Chinese cities.
The probe also revealed that the Dang family operated and controlled several foreign entities in collusion and collaboration with a key Chinese member of the syndicate known as Mr King, who, after procuring goods from numerous Chinese manufacturers and suppliers and accumulating the same in various godowns and warehouses, exported them to the firms controlled and owned by the Dang family.
ED investigations revealed that the goods imported by Dang Brothers are highly underinvoiced, and the compensatory payments were remitted abroad through Manideep Mago and Sanjay Sethi.
The remittances made by Manideep Mago and Sanjay Sethi were made against bogus invoices raised for the online lease of servers for crypto mining, education software, lease of Bare Metal Servers, etc.
However, investigations have revealed that no such services were actually provided and the remittances were made to foreign companies controlled by Manideep Mago and his accomplices, from where the payments were made to Chinese companies engaged in the export of various products to India.
The ED probe further revealed that the office of the Dang brothers and the office/residences of their clients were regular pick-up points for cash by employees of accused Manideep Mago and Sanjay Sethi.
This cash was layered through various bank accounts operated by the accused persons before being remitted abroad to make payments to Chinese exporters.
The ED in their investigation also revealed that the Dang Brothers were destroying evidence by asking their employees and clients to destroy and change their digital devices post the start of the ED investigation into the case.
