The Enforcement Directorate (ED) has attached cash worth ₹56 crore from a Kochi-based businessman, who is accused of carrying out money laundering under the guise of edible oil export to Bulgaria.
Officials said the seized money, in the form of Indian currency (₹28.09 crore) and dollars ($42.12 lakh) was deposited in the names of the businessman, Jose George, his wife, his company and daughter. The murky deal came to light when George received around ₹59 crore in the form of a Letter of Credit (LoC) from a Bulgarian company, Zezvda.
The alleged fraud was uncovered when the Customs department scrutinised the shipment documents. On finding that no commodity had been exported against the LoC, the case was referred to the ED.
While the company said that it had been sourcing sugar and sunflower oil from manufacturers based in Chennai and Maharashtra, the ED investigation found the claim to be false.
Similarly, the ED also found that the document filed by George for encashing the LoC with a public sector bank was forged. Besides, the shipping companies and agent mentioned in the documents were non-existent.
While the ED found that the money had been sent in violation of the Foreign Exchange Management Act (FEMA), the city police registered a case of cheating and forgery. The Income Tax department also carried out an investigation into the incident.
