The Enforcement Directorate (ED) has arrested Surat-based financer Kishore Bhajiawala on money laundering charges and for allegedly using 1,000 fake IDs to illegally convert Rs 1 crore in old notes into new post demonetisation.
The agency said it has placed "Jignesh Kishorebhai Bhajiawala (41) under arrest as per provisions of the Prevention of Money Laundering Act (PMLA) at about 11:45 PM last night" at is sub-zonal office here. He will produced in court today.
The Enforcement Directorate (ED) had registered a criminal FIR against Bhajiawala and some of his family members based on a CBI FIR against him, which was booked after the Income Tax department first conducted searches and seized gold and cash from his premises as part of their operation in December last year to check blackmoney post the notes ban.
The case had gained prominence after investigating agencies detected the proverbial rags-to-riches ascent of the 'chaiwala'-turned-financier based in the diamond city of Gujarat.
"The Bhajiawala family has converted a huge amount of their unaccounted money, post demonetisation, into new high denomination currency and other valuables through collusion with bank officials and private persons by impersonating, forgery and by using forged documents.
"An amount of over Rs 1.02 crore in new currency was seized by the I-T department from his premises during searches at his home, shop and bank lockers held by them. It was also found that the accused had hired several bank lockers in benami names to stash their unaccounted assets," the ED alleged.
In December last year, the Surat Income Tax Department, in its FIR registered with the CBI, had claimed that Bhajiawala’s family operated 56 accounts in different banks.
The I-T department had seized from him Rs 1,45,50,800 (all in new currency notes), gold worth Rs 1,48,88,133, gold jewellery worth Rs 4,92,96,314, diamond jewellery worth Rs 1,39,34,580, and silver ingots worth Rs 77,81,800. Sensing the involvement of banks and bigwigs, the case was later handed over to the CBI.
Bhajiawala, whose net worth is around Rs 2,000 crore, owns several commercial properties, flats, plots and rowhouses in the city.
Bhajiawala came to Surat about 31 years ago with his family and ran a tea and bhajiya stall for many years in Udhna. His business soon picked pace and he later started lending money to people on interest before moving on to the gold business in 2007.
