Financial investigation authorities have dismantled a sprawling cross-border hawala and money laundering network originating in Andhra Pradesh and stretching through commercial hubs in Delhi, Kolkata, and overseas jurisdictions including Singapore, Hong Kong, and China. The Visakhapatnam sub-zonal office of the Enforcement Directorate executed a coordinated search operation under the Prevention of Money Laundering Act across seven prominent locations in Delhi and Kolkata. Initial findings assess the total scale of the illicit financial racket at approximately Rs 1,500 crore.
Roots in a 2017 Visakhapatnam Police Case
The genesis of the ongoing investigation traces back to 2017, stemming from a formal complaint filed by the Income Tax Department. This led to the registration of FIR number 181/2017 at the M.V.P. Police Station in Visakhapatnam against primary accused Vaddi Mahesh and his associates. Building upon those police findings, the central agency initiated comprehensive inquiries into systematic money laundering, bogus foreign remittances, and financial fraud.
Fake Invoices and Rs 569 Crore Routed Abroad
Investigators discovered that Vaddi Mahesh conspired with his father and multiple accomplices to establish a complex web of corporate entities. The group created several shell companies registered at fictitious Kolkata addresses and opened corresponding corporate accounts across commercial banks. These accounts were then utilized to process substantial outward foreign remittances without genuine underlying commercial transactions.
Banking records revealed that a staggering Rs 569.03 crore was wired to five entities located in Singapore, Hong Kong, and China. The transfers were ostensibly justified as payments for procurement of custom software. However, the accused merely produced fabricated invoices to commercial lenders; no software of any kind was actually imported into the country against these hefty remittances. The enforcement action also covered major money laundering angles tied to the Shravanthi Group.
Smuggling Ring and Habitual Offender Bhimendra Kumar Goyal
As the money trail progressed, investigators uncovered the central role played by Bhimendra Kumar Goyal. According to agency records, Goyal is a habitual offender who had previously been detained three times under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA).
Goyal routinely manipulated the Customs Transit Declaration facility intended for Nepal-bound cargo. By evading mandatory Indian customs duties, he orchestrated the large-scale smuggling of high-value cosmetics, electronic gadgets, and fabrics into domestic Indian markets. The illicit cash generated from these domestic sales needed to be laundered and transferred abroad to compensate foreign suppliers, prompting Goyal to partner with Vaddi Mahesh's banking infrastructure.
Layering Through Shell Firms in Singapore and Hong Kong
Operating from New Delhi, Bhimendra Kumar Goyal teamed up with Pawan Kumar Ralli to manage non-genuine commercial firms, including M/s Mehak Overseas, M/s Karan Overseas, and M/s Geet Enterprises, created using forged identities and addresses. To disguise the contraband proceeds, Goyal relied on Vaddi Mahesh to channel money through shell corporate accounts. Between 2014 and 2017, these entities absorbed funds that were subsequently wired overseas under Goyal's explicit instructions.
The illicit transfers were parked in shell or dormant entities in Singapore and Hong Kong controlled by nominee directors. Once parked abroad, the capital underwent further layering before being credited to foreign corporate accounts belonging to Goyal and his relatives, specifically M/s Swift Fox Private Limited and M/s Bhav Technology China Limited. This intricate layering completed the cycle of converting illicit smuggling profits into seemingly legitimate foreign assets.
Cash, Foreign Currency, and Digital Evidence Seized
The search operations across seven premises in Delhi and Kolkata yielded substantial physical and digital evidence. Investigators seized over Rs 47 lakh in unaccounted domestic currency, along with international currencies comprising 5,900 US Dollars, 2,200 UAE Dirhams, and 5,600 Chinese Yuan (RMB/CNY). Officials also took custody of extensive incriminating records, real estate transaction documents, and electronic hardware used to coordinate the shell entities and facilitate financial layering.
