The accused was in judicial custody following his earlier arrest by the Mumbai Police's Economic Offences Wing (EOW). The special judge for the Prevention of Money Laundering Act cases remanded him in the ED's custody till April 1
The Torres office in Dadar, Mumbai. Pic/ATUL KAMBLE
A special court on Wednesday remanded suspected Hawala operator Alpesh Khara in Enforcement Directorate (ED) custody until April 1 in connection with the multi-crore Torres investment money-laundering case.
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Khara was in judicial custody following his earlier arrest by the Mumbai Police's Economic Offences Wing (EOW).
According to PTI, special judge for the Prevention of Money Laundering Act cases, AC Daga, remanded him in ED's custody till April 1.
The Central agency had sought his custody for seven days claiming a "direct nexus of the accused with the alleged crime".
Khara actively participated in collection of cash from the Dadar showroom of Torres and converted it into cryptocurrency, claimed ED.
The court noted that "prima-facie it appears that the accused was involved in handling and layering of proceeds of crime".
If his custody was not granted, it will hamper the investigation and the probe agency will not be able to trace the money generated in the crime, the court stated.
Platinum Hern Pvt Ltd, the owner of the Torres brand, is accused of defrauding approximately 14,000 investors of ₹142 crore through Ponzi and multi-level marketing (MLM) schemes.
So far, the Mumbai Police's Economic Offences Wing (EOW) has arrested seven individuals in connection with the case.
The Enforcement Directorate (ED) initiated a money-laundering probe based on an FIR filed by Navi Mumbai (Vashi) Police against the directors and associates of Platinum Hern. Three additional FIRs were later registered in Mumbai and Thane.
According to the ED, the company required a minimum investment of ₹1 lakh and promised a six percent weekly return. Investors who paid in cash were offered an extra two percent weekly return, leading to a majority of investments being made in cash. The company reportedly used the traditional Angadia courier system to handle funds.
Khara's custody was necessary to find out the money trail and its further layering, how it was converted into cryptocurrency and the beneficiaries of the proceeds of crime, the ED noted.
Advocate Parvez Memon, appearing for the accused, argued that Khara had no direct or indirect involvement in "so-called Torres scam".
He was merely a franchisee of H M Angadia, providing money transfer services to various clients for a nominal commission of Rs 35 per lakh, he submitted.
"At no point has he had any interaction with any victim of the alleged scam, nor was he aware that the funds in circulation were linked to any criminal conspiracy or constituted proceeds of crime," he added, reported PTI.
But the court, after going through the material on record, said it was a fit case to grant the custody of the accused to the probe agency.
(With inputs from PTI)
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