ED Action in Textile Trade Money Laundering Probe
The Enforcement Directorate issued a provisional attachment order on July 10 against assets totalling ₹47.3 crore, belonging to a prominent Ahmedabad-based textile trader and four associated companies, in connection with a money laundering investigation rooted in the predicate offence of tax evasion.
Properties Attached
The attached assets include two commercial properties in Ahmedabad’s Navrangpura area, a residential flat in Bodakdev, three bank accounts with combined balances of approximately ₹12 crore, and a fleet of commercial vehicles registered under one of the accused’s shell companies. The attachment order was issued under Section 5 of the Prevention of Money Laundering Act.
Background of the Investigation
The ED’s case is founded on a predicate offence identified by the Income Tax Department following a survey of the textile trader’s business premises in 2024. The IT survey had uncovered cash transactions of approximately ₹85 crore over three financial years that had not been declared in the firm’s income tax filings. The Enforcement Directorate initiated its money laundering inquiry on the basis that the proceeds of this tax evasion had been routed through layered transactions in real estate and other assets.
The accused has denied the allegations and is expected to challenge the attachment before the PMLA Special Court.