In line with its scrutiny over transactions by fintech firms, Enforcement Directorate (ED) is reportedly probing illegal foreign exchange remittances amounting to Rs 50,000 crore.
As per the report by a credible source, the firm is said to indulge in fabricated transactions such as importing services such as software, exporting from special economic zones, offering cloud computing services, and also leasing GPU server space to facilitate the movement of funds.
Furthermore, the sources cited in the report that bank officials are suspected of "leaking out" information pertaining to the ED probe. The ED searched the home of Manideep Mago and his company, Birfa IT Services. Mago is accused of illegal transactions in cryptocurrencies and transferring over INR 3,000 crore to Canada and Hong Kong last week. Due to this, the Delhi Crime Branch has already filed an FIR and caught hold of Mago and Sanjay Sethi (his accomplice).
The report has also mentioned that the law enforcement agency had found some "suspicious" dealings which involved cryptocurrencies at Birfa IT Services in Delhi. This was achieved due to a whistleblower shedding light on the situation. after receiving the tip. They had discovered that the company sold crypto assets which were valued at INR 1,850 crore and converted it nto cash.
Furthermore, the company then deposited the majority part of the cash to be used for fraudulent outward remittances to Hong Kong and Canada as per the report.
Multiple bank officials are also under the radar who supposedly helped Mago to deposit large amounts of cash. And after showing bogus expenditure and making foreign remittances, Mago declared this cash in his income-tax returns. These funds were then redirected towards unidentified beneficiaries. It is reported that Mago and his employees had gathered cash from hawala operators in Delhi and sent it overseas in a systematic way.
