ED Uncovers ₹4,800 Crore Invoicing Scam; Arrests Key Syndicate Members

The Enforcement Directorate (ED) has dismantled a trade-based money laundering syndicate involving ₹4,800 crore in illegal remittances. Two brothers, Mayank and Tushar Dang, directors of Imports From China, were arrested for facilitating under-invoiced imports and illicit fund transfers through a complex international network.

The Enforcement Directorate (ED) has busted a large trade-based money laundering racket involving illegal remittances worth ₹4,800 crore. Two brothers, Mayank Dang and Tushar Dang, directors of Delhi-based company Imports From China (IFC), were arrested under the Prevention of Money Laundering Act (PMLA).

The investigation revealed a sophisticated network comprising Indian importers, Chinese suppliers, and international hawala agents. IFC allegedly facilitated under-invoiced imports from China, enabling Indian traders to evade taxes and duties. The scheme involved issuing forged invoices and routing compensatory payments through multiple shell companies. The illicit funds were transferred overseas under the guise of bogus services like crypto mining and software leasing.

A key player in the syndicate, identified as "Mr. King," managed the procurement and export of goods from China to India. The Dangs also operated several foreign entities to conceal their activities. ED stated that their offices were hubs for cash collection, which was then layered through various bank accounts before being remitted abroad.

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The agency has so far identified over 1,100 Indian importers and more than 100 Chinese exporters linked to the scam. IFC, known for its extensive network of warehouses and translators in China, did not respond to queries. Further investigations are ongoing to trace the full extent of the network and recover the misappropriated funds.