Mumbai: The Enforcement Directorate (ED) has seized assets valued at Rs 12.5 crore belonging to Badshah Malik, Chandrakant Bhansali, and Dharmesh Rao in connection with a money laundering investigation linked to red-sanders smuggling. The case was previously investigated by Directorate of Revenue Intelligence (DRI), and the ED had earlier attached properties worth Rs 72 crore in the case.
ED probe commenced following a prosecution complaint submitted by DRI against Badshah Majid Malik, Vijay Subbanna Poojary, and others, regarding red sanders smuggling. The accused utilised shipments of Fabric Glue/Radiators/Assorted Colours as concealment while presenting falsified documentation from companies in SEZ zones.
Inquiry showed Badshah Malik had been running smuggling operations since 2008, accumulating illicit gains of Rs 94 crore. To legitimise these funds, he established Empire India Multi Trade Pvt Ltd, injecting share capital through numerous shell companies in exchange for cash via accommodation entries. The company was subsequently used by him and his associates to acquire various immovable properties.
ED’s investigation established that Badshah Malik participated in smuggling activities during 2008-2010 and 2014-2015, generating Proceeds of Crime (POC) amounting to Rs 94 crore, which he channelled via multiple shell companies through accommodation entries in exchange for cash.
