Money Laundering Web Unveiled: Kwality Ltd. Exposed

The Enforcement Directorate seized Rs 1.3 crore in cash linked to shell companies in a Rs 1,400 crore bank fraud at Kwality Ltd. Luxury cars and demat accounts worth Rs 6.5 crore were frozen. The alleged fraud, involving falsified financial records, originated from a 2020 CBI FIR.

The Enforcement Directorate (ED) has confiscated Rs 1.3 crore in cash, uncovering connections to shell companies following a search operation on the former promoters of Kwality Ltd. This action is part of a wider investigation into an alleged Rs 1,400 crore bank fraud involving money laundering activities.

Additionally, luxury vehicles, including high-end brands like Porsche, Mercedes, and BMW, along with demat accounts worth approximately Rs 6.5 crore, were frozen under the Prevention of Money Laundering Act (PMLA) during extensive raids in Delhi-NCR. These raids targeted the former promoters and directors, Sanjay Dhingra and Siddhant Gupta, and their related entities.

The case, initially prompted by a CBI FIR in September 2020, accuses Kwality Ltd. of fraudulent activities like falsifying account books and misrepresenting sales and purchases to defraud a consortium of banks. The investigation revealed manipulations that artificially inflated financial figures and involved complex money routing through 'sham' companies.

(With inputs from agencies.)