ED seizes ₹47 lakh, foreign currency in Delhi-Kolkata fake software import probe
Synopsis
What looked like routine software import payments turned out to be a ₹1,500 crore laundering web — fake invoices, shell companies in Singapore and Hong Kong, a serial COFEPOSA offender, and fictitious Delhi firms. The ED's Delhi-Kolkata raids have now cracked the outer shell of an alleged fraud that ran from 2014 to 2017 and spanned three countries.
Key Takeaways
The ED searched seven premises in New Delhi and Kolkata on 2 November , seizing ₹47 lakh in cash and foreign currency including US $5,900 , 2,200 UAE dirham , and 5,600 Chinese yuan .
Proceeds of crime are prima facie estimated at ₹1,500 crore ; ₹569.03 crore was allegedly remitted to five companies in Singapore , Hong Kong , and China via fake software invoices.
Key accused Vaddi Mahesh allegedly floated multiple shell companies in Kolkata to channel remittances abroad during 2014–17 .
Alleged mastermind Bhimendra Kumar Goyal , detained thrice under COFEPOSA , is accused of using the scheme to pay overseas suppliers for smuggled goods.
Fictitious firms Mehak Overseas , Karan Overseas , and Geet Enterprises were allegedly operated at fake New Delhi addresses by Goyal and Pawan Kumar Ralli .
The case was initiated on the basis of an FIR by M.V.P.
Police Station, Visakhapatnam , on a complaint from the Income Tax Department .
The Enforcement Directorate (ED) on Monday, 2 November conducted searches across seven premises in New Delhi and Kolkata, seizing ₹47 lakh in unaccounted cash and multiple foreign currencies in a money laundering case linked to the illegal transfer of funds abroad under the guise of software import payments. The proceeds of crime in the case are prima facie estimated at approximately ₹1,500 crore.
What Was Seized
The search operations, carried out by the ED's Visakhapatnam Sub-Zonal Office under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, yielded ₹47 lakh in unexplained cash alongside foreign currency comprising US $5,900, 2,200 UAE dirham, and 5,600 Chinese yuan (renminbi). Investigators also recovered voluminous incriminating documents, property papers, and digital devices allegedly containing evidence of layering of crime proceeds and their transfer abroad through shell entities.
How the Alleged Fraud Was Structured
According to the ED, the investigation was triggered by an FIR registered by the M.V.P. Police Station, Visakhapatnam, on a complaint filed by the Income Tax Department against Vaddi Mahesh and others. The accused are alleged to have created false and forged documents to facilitate foreign outward remittances through multiple banks.
Investigators found that Vaddi Mahesh, along with his father and associates, floated several companies with registered offices in Kolkata and opened bank accounts in their names. Through these accounts, a total of ₹569.03 crore was reportedly remitted to five companies in Singapore, Hong Kong, and China, purportedly for the purchase of customised software. However, the ED alleges that fabricated invoices were submitted to the banks and no software was actually imported against these payments.
The Smuggling Connection
The money laundering trail, according to investigators, leads to Bhimendra Kumar Goyal, described as a habitual offender who has been detained thrice under the Conservation of Foreign Exchange and Prevention of Smuggling Activities Act (COFEPOSA). Goyal is alleged to have smuggled cosmetics, electronic goods, and textile fabrics into India by evading customs duty, including by allegedly misusing the Customs Transit Declaration Scheme available for Nepal.
The ED alleges that Goyal approached Vaddi Mahesh through associates to remit payments to overseas suppliers and launder proceeds from the sale of smuggled goods. During 2014–17, Mahesh's shell company accounts allegedly received funds and remitted them abroad on Goyal's instructions. These funds were reportedly parked in dormant or newly incorporated companies in Singapore and Hong Kong held by nominee directors, before being transferred to accounts of Goyal and his family's firms — Swiss Fox Pte Ltd and Bhav Technology China Limited — to project the proceeds as legitimate.
Fake Firms and Further Diversion
Investigators further allege that Bhimendra Kumar Goyal, in collusion with Pawan Kumar Ralli, operated fictitious firms — Mehak Overseas, Karan Overseas, and Geet Enterprises — under false names at fake addresses in New Delhi. A portion of the proceeds was allegedly also routed abroad through an entity called Village Handicraft Export and received by Eagle Mount Trading Pte Ltd, Singapore, reportedly beneficially owned by Ashish Todi.
The case underscores a recurring pattern of multi-layered cross-border laundering schemes that exploit shell companies, nominee directors, and fabricated trade documentation. With the estimated proceeds at ₹1,500 crore, further arrests and asset attachments are expected as the investigation progresses.
Point of View
500 crore estimated proceeds figure places this case among the larger PMLA investigations of recent years, yet the alleged mechanics — fabricated invoices, nominee directors, dormant shell companies — are depressingly familiar. What stands out is the COFEPOSA angle: a smuggling operation using a trade-documentation fraud as its laundering vehicle points to structural gaps in how Indian banks verify software import claims. The Income Tax Department's role as the original complainant also highlights how customs and direct-tax intelligence, when shared proactively, can unlock money laundering trails that ED action alone would struggle to initiate.
NationPress
2 Nov 2026
Frequently Asked Questions
What did the ED uncover in the Delhi and Kolkata raids?
The ED seized ₹47 lakh in unaccounted cash and foreign currency — including US $5,900, 2,200 UAE dirham, and 5,600 Chinese yuan — along with incriminating documents and digital devices during searches at seven premises in New Delhi and Kolkata on 2 November. The raids are part of a money laundering probe with proceeds of crime estimated at approximately ₹1,500 crore.
How was the alleged money laundering carried out?
Accused Vaddi Mahesh and associates allegedly floated multiple shell companies in Kolkata, opened bank accounts in their names, and remitted ₹569.03 crore to five companies in Singapore, Hong Kong, and China under the pretext of purchasing customised software. Fabricated invoices were submitted to banks, but no software was actually imported against these payments.
Who is Bhimendra Kumar Goyal and what is his alleged role?
Bhimendra Kumar Goyal is described by the ED as a habitual offender who has been detained thrice under COFEPOSA. He is alleged to have smuggled cosmetics, electronics, and textiles into India by evading customs duty, and then used Vaddi Mahesh's network to remit payments to overseas suppliers and launder the proceeds of that smuggling activity.
What legal framework is the ED using in this case?
The searches were conducted under the Prevention of Money Laundering Act (PMLA), 2002, by the ED's Visakhapatnam Sub-Zonal Office. The investigation was originally triggered by an FIR registered by M.V.P. Police Station, Visakhapatnam, on a complaint from the Income Tax Department against Vaddi Mahesh and others.
What happens next in the investigation?
With digital devices, property papers, and incriminating documents seized, the ED is expected to analyse evidence of layering and further cross-border transfers. Given the estimated ₹1,500 crore in proceeds of crime, further arrests and asset attachments under PMLA are likely as the probe advances.
