New Delhi: The Enforcement Directorate’s Visakhapatnam sub-zonal office has searched seven premises in Delhi and Kolkata in a money-laundering investigation into alleged overseas transfers disguised as payments for customised software imports. The agency said it seized Rs 47 lakh in cash and foreign currency during the searches.
In a November 2 release, the ED listed the foreign currency seized as US $5,900, 2,200 UAE dirhams and 5,600 Chinese yuan. It also reported seizing documents, records, property papers and digital devices which, it alleged, contained evidence of layering proceeds of crime and transferring funds overseas through shell entities.
ED, Visakhapatnam has carried out search operations under PMLA, 2002 at 07 premises located at Delhi and Kolkata, in the matter of illegal transfer of funds outside India in the guise of payments for import of customized software on the basis of forged documents. The search resulted into seizure of unaccounted/unexplainable cash worth of INR 47 Lakhs and foreign currency amounting to USD 5900, 2200 AED, 5600 RMB/CNY alongwith voluminous incriminating documents/records/property papers and digital devices containing evidence of layering of Proceeds of Crime and its transfer outside India through shell entities.
— ED (@dir_ed) November 2, 2026
The investigation followed an FIR registered by M.V.P. Police Station in Visakhapatnam on an Income Tax Department complaint against Vaddi Mahesh and others. According to the ED, the complaint concerned allegedly forged documents presented as genuine to make outward remittances through banks.
The ED alleged that Mahesh, his father and others floated companies with registered offices in Kolkata and opened bank accounts through which Rs 569.03 crore was transferred to five companies in Singapore, Hong Kong and China, ostensibly for customised software. It said fabricated invoices were submitted and no software was imported against those remittances.
ED alleges overseas transfers through shell companies
The agency further alleged that Bhimendra Kumar Goyal, an offender detained three times under COFEPOSA, smuggled cosmetics, electronic goods and textile fabrics while evading customs duty, including by misusing the Customs Transit Declaration Scheme available for Nepal. According to the ED, he approached Mahesh through associates to pay overseas suppliers and launder money from the sale of smuggled goods.
The ED said Mahesh received funds from various entities in his shell-company bank accounts during 2014–17 and remitted them abroad on Goyal’s instructions. It alleged the money was parked in dormant or newly incorporated Singapore and Hong Kong companies run by nominee directors, then transferred to Goyal and family-linked companies, including Swiss Fox Pte Ltd and Bhav Technology China Limited.
The release also alleged that Goyal and Pawan Kumar Ralli operated Mehak Overseas, Karan Overseas and Geet Enterprises under fictitious names at fake New Delhi addresses. It said some proceeds were diverted through Village Handicraft Export to Eagle Mount Trading Pte Ltd in Singapore, beneficially owned by Ashish Todi. The ED put the proceeds of crime at about Rs 1,500 crore on a prima facie basis and said further investigation was continuing.
