The Surat branch of the Directorate of Enforcement (ED) recently carried out search operations in four cities across Gujarat and Maharashtra as part of a money laundering investigation involving Paplaj Foreign Trade LLP. The case centres around suspicious outward remittances related to the import and export of diamonds.
Under the provisions of the Foreign Exchange Management Act (FEMA), 1999, the ED conducted searches at the premises of M/s Paplaj Foreign Trade LLP, its partners Somabhai Sunderbhai Meena and Ojaskumar Mohanlal Naik and its associates in Surat, Vadodara, Mumbai and Pune. During these operations, investigators seized various incriminating documents and electronic devices.
The ED acted on a tip-off that Paplaj Foreign Trade LLP had artificially inflated the value of diamond imports, resulting in large-scale remittances. Between July 2023 and March 2024, the firm allegedly remitted approximately Rs. 2800 Crore.
Further scrutiny revealed that Paplaj Foreign Trade LLP received funds from non-existent entities based in Surat, Delhi, Mumbai, Pune and other locations. These funds were subsequently remitted to eight entities in Hong Kong. The investigation uncovered a complex web of transactions involving shell entities, camouflaged as the sale-purchase of diamonds.
As the probe continues, authorities are closely examining the financial intricacies surrounding Paplaj Foreign Trade LLP’s operations.
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