The Enforcement Directorate (ED) has launched a probe into an alleged attempt by a Kochi-based export firm to launder Rs.55 crore under the guise of earnings from export of edible oil to Bulgaria.
Officials said the export company named Trade International received Rs.55 crore from a Bulgarian company named Zevzda in July this year in payment for sunflower oil and sugar exports among other produces.
The money, in the form of a Letter of Credit, was transferred from a bank in Bulgaria to the exporter’s account with a trade facilitation branch of the State Bank of India on Willingdon Island.
Rs.30 cr. withdrawn
A few days later, Jose George, proprietor of the company, withdrew Rs.30 crore from the account and deposited the money in the accounts of his family members. Prior to withdrawing amount, the bank requested Mr. George to furnish the documents to prove that the exports had already been done.
ED notified
“The fraud came to light when the Customs Department found that the document submitted by the exporter was forged. The Customs officials found that no material had been shipped. But since the money had already been withdrawn the Customs officials decided to refer the matter to the ED,” an ED official said.
Accounts frozen
The ED also found that some of the export documents submitted by the firm carried a forged seal of the Customs Department. Based on the finding, it has frozen all the accounts to which the money was transferred.
Meanwhile, preliminary investigations revealed that Trade International had executed just one export contract — that of exporting sunflower oil to Iraq —during the whole year. It entered into a deal with the Bulgarian company during the same period.
Figures do not match
“With the law of the land permitting overseas sales of cooking oils in small packs of up to 5 kg for a year with a limit of 20,000 tonnes, the volume of sunflower oil as specified in this particular export agreement could not be executed by any exporter in the country,” he added.
Though the ED had approached officials of the Bulgarian company seeking more details about the export contract, the company has refused to cooperate with the investigation.
“The importer is not willing to lodge a complaint, raising suspicion that the money had been sent for some other purpose in the cover of an export deal,” officials added.
As part of investigation, ED inspected the office of Mr. George in Elamakkara and recorded his and his relatives’ statements.
Mr. George told the media that the allegations levelled against him were false and the government agencies were moving against him with some vested interests.
