The Enforcement Directorate (ED) has carried out searches at seven locations in Delhi and Kolkata as part of an investigation into suspected money laundering involving overseas transfers allegedly disguised as payments for software imports. Investigators suspect that forged invoices and multiple company accounts were used to move large sums of money to foreign entities without any corresponding software deliveries.
According to the agency's findings cited in the report, approximately ₹569.03 crore was transferred to overseas companies through transactions presented as software purchases. The ED has estimated the wider suspected proceeds of crime at around ₹1,500 crore.
The searches were conducted by the ED's Visakhapatnam Sub-Zonal Office under the Prevention of Money Laundering Act (PMLA), 2002. Officials are examining financial records, company documents and digital evidence to establish the alleged money trail and identify all individuals and entities involved.
Investigation Originated From 2017 Income Tax Complaint
The investigation reportedly began with an FIR registered at MVP Police Station in Visakhapatnam on May 11, 2017. The case followed a complaint by the Income Tax Department against Vaddi Mahesh and others.
Investigators allege that the accused conspired to create forged documents and use them to facilitate overseas remittances through multiple banking channels.
The probe subsequently focused on companies allegedly established by Mahesh, his father and their associates. Several of these entities reportedly had registered offices in Kolkata and were allegedly used to open bank accounts for transferring funds abroad.
₹569.03 Crore Allegedly Sent Overseas Through Software Invoices
According to the ED's investigation, bank accounts opened in the names of these companies were used to transfer approximately ₹569.03 crore to five entities based in Singapore, Hong Kong and China.
The transactions were reportedly described as payments for customised software. However, investigators allege that the invoices submitted to banks were fabricated and that no corresponding software was imported.
The suspected mismatch between the declared purpose of the payments and the actual movement of funds has become a central focus of the investigation.
The agency is examining the supporting documents and banking records to determine how the transactions were processed and whether the companies involved had any genuine commercial activity connected with the stated imports.
Investigators Trace Alleged Links to Smuggled Goods
The ED's findings reportedly identify Bhimendra Kumar Goyal as another individual allegedly connected to the financial network. Investigators suspect that the arrangement was used to transfer money generated through the trade of smuggled goods.
Between 2014 and 2017, Mahesh allegedly received funds through accounts linked to suspected shell companies and transferred money overseas on Goyal's instructions.
The investigation suggests that the funds may have passed through dormant or recently incorporated foreign companies before reaching accounts associated with Goyal and members of his family.
Authorities are examining these transactions to establish the alleged relationship between the domestic companies, overseas entities and final recipients of the funds.
Suspected Fictitious Companies Under Scrutiny
Investigators have also identified companies allegedly operating under false identities and addresses in Delhi. The ED suspects that several business entities were used to move funds through multiple layers of transactions, making the original source and destination of the money harder to establish.
Some of the funds were reportedly routed through additional trading businesses before being transferred to overseas recipients.
The agency's estimate of approximately ₹1,500 crore relates to the wider suspected proceeds of crime under investigation. It is separate from the ₹569.03 crore in overseas transfers specifically described in the report.
The investigation is continuing to determine the extent of the alleged network and whether other companies or individuals were involved.
Cash, Foreign Currency and Digital Evidence Seized
During the searches at the seven locations, ED officials reportedly recovered ₹8.47 lakh in unaccounted cash and foreign currency. The currencies included US dollars, UAE dirhams and Chinese yuan.
Investigators also seized documents, property-related records and digital devices that may contain information about financial transactions and company operations.
The seized material is being examined to reconstruct the movement of funds, verify the role of the companies involved and identify possible additional beneficiaries.
ED Investigation Continues Under PMLA
The latest searches form part of an ongoing investigation into suspected overseas remittances, alleged forged import documentation and possible concealment of funds through domestic and foreign entities.
The agency is expected to analyse the recovered records alongside banking information and other evidence to establish the full financial trail. Further action will depend on the findings of the investigation and the evidence gathered against the individuals and entities concerned.
Cases involving complex corporate structures and cross-border transactions also highlight the importance of proper financial records, transaction verification and internal controls. Shunyatax's financial investigation and forensic support can help organisations review suspicious financial activity and identify documentation or accounting irregularities.