The Directorate of Enforcement (ED), Mumbai Zone II, has seized ₹13.5 crore in cash during search operations at seven locations in Ahmedabad and Mumbai as part of its investigation into a money laundering case involving Nashik Merchant Co-operative Bank (NAMCO Bank), Malegaon. The case revolves around the alleged laundering of over ₹100 crore through fraudulent accounts opened using fake identity documents.
The case originated from FIR No. 295/2024, registered on November 7, 2024, by Malegaon Chawani Police Station, Nashik. The FIR accused Siraj Ahmed Mohammad Harun Memon and his associates of using identity documents obtained under false promises or for monetary compensation to deposit massive sums into 14 newly opened accounts at NAMCO Bank. The ED’s probe also uncovered five similar accounts at the Bank of Maharashtra, Nashik branch.
The investigation revealed that funds from these accounts were routed to 21 sole proprietorships, which recorded transactions worth hundreds of crores. The money was further transferred to various firms and companies, with large amounts withdrawn in cash. Two individuals, Nagani Akram Mohammad Shafi and Vasim Valimohmad Bhesaniya, were arrested under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002, for their role in withdrawing cash and distributing it to angadiyas and hawala operators in Ahmedabad, Mumbai, and Surat. These activities were reportedly orchestrated by Mehmood Bhagad, alias “Challenger King.”
Earlier, the ED conducted raids at 25 premises across Mumbai, Surat, Ahmedabad, and Nashik, seizing incriminating documents, digital evidence, fixed deposits, and bank balances amounting to ₹5.2 crore. The recent ₹13.5 crore cash seizure marks a significant step in the agency’s efforts to dismantle the money laundering network. Investigations are ongoing to uncover the full scope of the illegal operations.
