Raj Kumar Goenka was booked by the police in Bihar and the case against him is registered at the Mithanpura police station in Muzaffarpur district.
The Enforcement Directorate (ED) alleged that Goenka misused KYC (Know Your Customer) information of his employees and other people to deposit and transfer illegitimate funds.
KYC is a process through which banks obtain information about the identity of their customers so that its services are not misused.
The agency said in its probe it found that the Goenka had opened many bank accounts fraudulently in the name of his family members and employees. Illegal and unaccounted cash was deposited in these accounts without showing any genuine source of income, the ED said.
"The proceeds of crime placed in these bank accounts have been claimed as business income from firms like Kanta Sales Corporation, Pooja Trading Company, Pooja Jewellers, Manish Jewelers etc though no real business have been carried out by these firms," the agency said in a statement.
No records relating to business operations by these firms could be produced during investigation and when these locations were raided by ED sleuths in June "nothing related to any business activity was found", it said.
"Investigation revealed that Income Tax Returns (ITRs) declaring business income were filed regularly to cover up the crime. Even the ITRs in the name of school going children with fraudulently obtained PAN were filed to disguise the illegal money as business income," it alleged.
Proceeds of crime generated in cash have been siphoned off after being layered through several bank accounts of multiple shell companies, the ED said.
The agency has issued a provisional order against Goenka under the Prevention of Money Laundering Act (PMLA) attaching three houses, valued at Rs 3.13 crore, in Muzaffarpur, two vehicles worth Rs 18.57 lakh, bank balances worth Rs 23.34 lakh and a life insurance policies of Rs 98.57 lakh.
The total attachment value under the latest order is Rs 4.53 crore. Probe in the case is ongoing, it said. NES NES ANB ANB