The central federal agency initiated money-laundering investigation on the basis of FIR dated May 17 registered by CBI under the provisions of IPC and PC Act, 1988 against the U.S Awasthi and others for criminal conspiracy, cheating and criminal misconduct.
Alok Kumar Agarwal is Chairman of Alankit Group, which is engaged in providing various services including Equity Broking/Commodity Broking, Depository Participant, GST Suvidha Centre, PAN Centre & TIN Facilitation Centre etc. The allegations against the accused include routing of proceeds of crime involved in the impugned investigations through his group entities based in India and Dubai.
He facilitated cross border transfer of proceeds of crime (approximately Rs 40 crore identified so far) to India from Dubai for a monetary consideration. Investigations are underway to identify all the other beneficiaries of the illegal money exchange module (Hawala) being operated by him.
Earlier AD Singh (Member of Parliament, Rajya Sabha) had also been arrested in this case and he continues to be in judicial custody after the rejection of his bail application by the Honorable Special Court. Investigations done so far have revealed that a part of the proceeds of crime has been received by him through this module.
Alok Kumar Agarwal was produced before the Honourable Special Court on July 13 and the Honourable Court has granted remand to the custody of ED for a period of 10 days.