Bengaluru, Sep 25 (IANS) The Enforcement Directorate (ED) has conducted searches at 16 premises linked to Bengaluru-based Attica Gold Private Limited and others across Bengaluru, Chennai, Hyderabad and Visakhapatnam in connection with an alleged money laundering case involving the purchase and acquisition of stolen gold, an official statement said on Friday.
The searches were conducted on September 23 and 24 under Section 17 of the Prevention of Money Laundering Act (PMLA), 2002, by the ED’s Bengaluru Zonal Office.
According to the ED, the investigation relates to allegations that Attica Gold Private Limited, its shareholders and directors were habitually involved in the purchase, acquisition and dealing of stolen gold articles, allegedly generating substantial proceeds of crime.
The investigation was initiated based on multiple FIRs registered and charge sheets filed by police authorities at various police stations over allegations of habitual purchase, acquisition and dealing in stolen gold, the central agency said.
The ED said that information gathered from the FIRs was further supported by other verifiable inputs regarding alleged money laundering activities and processes undertaken by the accused persons.
The searches covered residential premises of directors, former directors and shareholders, besides the head office and branches of Attica Gold Private Limited and other linked premises.
The central probe agency identified P.S. Ayub alias Bomanahalli Babu, Obedulla A., Mohammed Salman A. and Arbin Taj A. among the key persons linked to the investigation.
According to the ED, these persons did not cooperate with the search proceedings and remained absconding.
The ED also alleged that employees at some of the business premises covered during the searches had been instructed by the key persons to remain unavailable during the proceedings.
The searches resulted in the seizure of alleged proceeds of crime in the form of Rs 7.52 lakh in cash, apart from foreign currency, gold jewellery and silver articles, the central agency said.
The ED added that further investigation into the case is underway.
It can be noted that Attica Gold has a large network of outlets across several states and is involved in the purchase and sale of gold. The company is into purchasing gold directly from individuals, melting it down and converting it into jewellery before selling it through its outlets.
The ED is examining complaints and allegations concerning the manner in which gold was procured and subsequently processed and sold by the company.
The organisation had also been searched by the Income Tax Department in the past as part of an earlier investigation.
Attica Gold has expanded its business across multiple states and reportedly operates around 200 outlets.
The company’s business model involves buying and selling gold through its network of shops.
The latest ED action has also drawn attention to Bommanahalli Babu, widely known as Attica Babu, to his political activities. He was reportedly preparing to contest the bypoll from the Hiriyur Assembly constituency.
–IANS
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