Three Arrested at Sagar Diamond in Money Launder Probe
March 05, 23
(IDEX Online) - Three people have been arrested in a series of raids in India at premises linked to the manufacturer and exporter Sagar Diamond Limited.
The Directorate of Enforcement (ED)said it was investigating money-laundering claims relating to a China-based app called Power Bank, listed on Google Play Store, which offered investors returns of up to 10 per cent, then blocked their accounts.
A number of manufacturing units were "involved in exorbitant overvaluation of import/export of diamond, gemstones and other precious metals and siphoning of funds abroad in the garb of bogus imports," said the ED in a statement.
Raids were carried out at 14 locations in the Surat SEZ (special economic zone), Ahmedabad and Mumbai. Gold, diamonds and other valuables worth $30,000 were seized.
The ED said thousands of people have been cheated through the app, managed by Chinese nationals in connivance with associates in India, including Vaibhav Dipak Shah and M/s. Sagar Diamond Ltd.
Shah is a director and majority shareholder of Sagar.
The statement went on: "Search revealed that proceeds of crime generated from the fraud have been routed and possessed by M/s. Sagar Diamond Ltd. and others."
Sagar Diamond says on its website that its mission includes "Creating a business environment of utmost trust among all levels and functions".