ED searches 7 premises in Delhi, Kolkata in Rs 569 crore fake software import case
The ED said it searched seven premises in Delhi and Kolkata in a money laundering case in which, it alleges, Rs 569.03 crore was sent abroad against forged software import invoices.
Key points
- The ED's Visakhapatnam Sub-Zonal Office said it searched seven premises in Delhi and Kolkata under the PMLA.
- According to the ED, Rs 569.03 crore was remitted abroad for software that was never imported, and it estimates proceeds of crime at about Rs 1,500 crore.
- The ED said it seized Rs 47 lakh in cash and some foreign currency; it says further investigation is in progress.
Photo: Chris Woodrich / Wikimedia Commons, CC BY-SA 4.0 (cropped). Representational image.
The Enforcement Directorate (ED) said on 2 November 2026 that its Visakhapatnam Sub-Zonal Office searched seven premises in Delhi and Kolkata under the Prevention of Money Laundering Act (PMLA). The agency alleges that Rs 569.03 crore was sent abroad as payments for customised software that was never imported, using forged documents.
What Happened
The ED said its investigation began from an FIR registered by the M.V.P. Police Station in Visakhapatnam on a complaint from the Income Tax Department. According to the ED, the main accused, along with his father and others, set up several companies with registered offices in Kolkata and opened bank accounts in their names.
The ED alleges that Rs 569.03 crore was transferred through these accounts to five companies in Singapore, Hong Kong and China, and that fabricated invoices of the foreign companies were given to banks while no software was imported.
The agency further alleges that the remittances, made during 2014-17, were carried out on the instructions of a person who smuggled cosmetics, electronic goods and textile fabrics into India while evading customs duty, and who had earlier been detained three times under COFEPOSA, a preventive detention law for smuggling. According to the ED, the funds were parked in companies in Singapore and Hong Kong held by nominee directors and then moved on, and part of the money was routed through fake firms operating from fictitious addresses in New Delhi.
The ED prima facie estimates the proceeds of crime in the case at about Rs 1,500 crore. It said the searches led to the seizure of Rs 47 lakh in cash, foreign currency of USD 5,900, 2,200 AED and 5,600 RMB/CNY, along with documents, property papers and digital devices. The ED said further investigation is in progress.
These are allegations, not findings of guilt; the accused are presumed innocent until proven guilty in court, and due process continues.
What It Means
The case, as the ED describes it, shows how bank remittances for imports can be misused when invoices are fabricated. A search and seizure is a step in an investigation and is not a finding by a court.
If someone offers you money to open a company or a bank account in your name for another person's payments, refuse. You can report suspected financial cyber fraud at https://cybercrime.gov.in or on helpline 1930.
This report describes enforcement actions and allegations on the public record, attributed to the officials cited. An order, FIR or chargesheet is not a conviction; parties are presumed innocent until proven guilty.
Named in this report, or spotted an error? Corrections and responses: editor@oquilia.com. We correct errors promptly and record responses from named parties.
Sources & Citations
- Enforcement Directorate press release — Enforcement Directorate