ED conducts searches in connection with Iqbal Mirchi case
Officials are reportedly analysing documents, financial records and transaction trails to determine the movement of funds and the role of different entities involved.
The Enforcement Directorate (ED) on Thursday carried out searches at multiple locations as part of its ongoing investigation into the alleged money laundering and financial transactions linked to gangster and drug trafficker Iqbal Mirchi.
According to officials familiar with the matter, the probe is connected to the alleged diversion and siphoning of funds from Dewan Housing Finance Corporation Limited (DHFL). Investigators are examining financial transactions and property deals suspected to be linked to proceeds of crime.
Dheeraj Wadhawan, one of the key accused in the broader DHFL investigation, has been accused by the agency of allegedly purchasing three properties associated with Iqbal Mirchi in Mumbai’s Worli area using funds that were allegedly diverted and laundered through various channels.
As part of the investigation, the ED also questioned a former DHFL director believed to be closely associated with the Wadhawan family. Officials are reportedly analysing documents, financial records and transaction trails to determine the movement of funds and the role of different entities involved.
The case gained further attention after a forensic audit conducted by Ernst & Young reportedly pointed to serious irregularities within DHFL’s loan accounts. According to findings cited by investigators, a substantial portion of the company’s loan book could not be properly traced, raising concerns over alleged fictitious loans, shell companies and possible diversion of funds.
The ED has alleged that thousands of crores were siphoned out of the financial institution through complex financial structures and front entities. Investigators suspect that a portion of these funds may have been utilised in high-value property transactions linked to Mirchi and other associated individuals.
The agency continues to examine documents and financial evidence as part of its wider probe into suspected money laundering, financial fraud and alleged benami property transactions connected to the case.