ED Seizes Rs 78.15 Lakh in Money Laundering Probe Linked to Environmental Crime

The Enforcement Directorate seized Rs 78.15 lakh in unaccounted cash during raids in Punjab, Delhi, and Madhya Pradesh against Malbros International Pvt Ltd and ex-director Gautam Malhotra. The raids were part of a money laundering probe connected to environmental violations leading to public health risks.

The Enforcement Directorate (ED) has seized unaccounted cash amounting to Rs 78.15 lakh during raids at seven locations in Punjab, Delhi, and Madhya Pradesh. The raids are linked to liquor company Malbros International Pvt Ltd and its former Director Gautam Malhotra, as part of a money laundering investigation related to environmental crime, the agency reported on Friday.

The July 16 raids also led to the seizure of digital devices and incriminating documents. These actions were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The ED initiated the investigation following a criminal complaint filed by the Punjab Pollution Control Board in the Court of Chief Judicial Magistrate, Ferozepur, against Malbros International for violating sections of the Water (Prevention and Control of Pollution) Act, 1974. The company allegedly contaminated soil and groundwater around its factory. Investigations revealed the firm illicitly discharged industrial effluents into bore-wells within its premises, posing public health risks and causing cattle deaths in the vicinity. Further investigation will trace the money generated from these environmental crimes, which was allegedly funneled into the company's business activities.

(With inputs from agencies.)