ED probing Mashreq role in forex case

The ED has also sought a clarification from the RBI if the foreign bank had the authority to transfer the money in the account of a FFMC in Dubai though the FFMC was registered to operate in India. Mashreq Bank should have, if at all, transfered the money to the FFMCs only at its Mumbai branch. Rajendran is accusedof converting black money into white money through illegal means.

Investigations revealed that an NRI based in Dubai had deposited over Rs 5 crore US dollars (???) in the Mashreq Bank in the names of Sterling Exchange Corporation, Goodluck Forex (I) Pvt Ltd and Rahem Travel Services. The three FFMCs are being run by S Rajendran. The NRI is working as a coolie in Dubai and is having no means of such large money. Also, the NRI has admitted to the Chief Enforcement Officer in Chennai through a letter that the deposits were arranged by S Rajendran of Sterling Group of Companies.

The NRI has admitted that the Travellers Cheques stock for the FFMCs were collected by him at Dubai and sent to mostly to a person by the name of Jain at Singapore as per the instructions of Rajendran. The money was sent to Rajendran’s contact person in Singapore, who arranged payments in Indian currency in the country, delivered at his office which was remitted into the bank accounts of FFMCs and the funds accumulated were put to usethrough the bank accounts in settling the amounts due on TCs received.

Meanwhile, the ED has written to the bank to freeze the money in the account of the three FFMCs till the case is adjudicated.

Rajendran had facilitated signing of those TCs at Singapore by groups of persons leaving for Singapore and on account of these arrangements, FFMCs were in receipt of margin of 40 paise per dollar after meeting all administrative expenses connected with those transactions.

The Basic Travel Quota (BTQ) applications were manipulated to show as if the foreign exchange were sold to persons going abroad. The deposits by way of foreign exchange made in Mashreq Bank, Dubai, which facilitated the FFMCs in getting supply of money was arranged by Jainulabdeen of Singapore through his friend Batcha.

The ED has seized documents showing transfer of accounts and Rajendran’s involvement in the unauthorised sale of US TCs. The ED has conducted investigations in Chennai, Mumbai, and Tiruchi in India apart from verification inDubai, Singapore, Malaysia, London, among other cities.