Amid claims and counter claims on hawala operator Afroze Fatta’s links with political leaders of the BJP and the Congress, the Enforcement Directorate on Wednesday registered a fresh case against the Surat-based trader under the stringent Prevention of Money laundering Act (PMlA).
On Monday, the Congress had released a purported photograph of Fatta with BJP’s prime ministerial candidate Narendra Modi and alleged a nexus between the two. The BJP, however, rejected any links between them and hit back by circulating a photograph of Fatta with Congress MP Mohammad Azharuddin.
Fatta was arrested last month by the Economic Offences Wing of the Gujarat Police in connection with an alleged hawala racket involving money laundering of about Rs1,000 crore.
The State police are cooperating with the Central agency for the ongoing probe for violations under Foreign Exchange Management Act. The ED is mandated to probe cases under FEMA and PMlA.
Sources said Fatta, who was summoned by the ED, appeared before officials in Surat on Tuesday and was questioned over the allegations of money laundering. The ED has asked him to appear before it later for further investigations after the agency scrutinises the documents submitted on Tuesday.
Sources said the ED probe has not pointed to any nexus between Modi and Fatta and rubbished the Congress’ charge as a political posturing during the ongoing Parliamentary polls.
The Surat-based trader has been cooperative in the investigations but he has not been given a clean chit yet into the allegations of money laundering, the sources said. Fatta was arrested in Surat on March 21 on the charge of transferring money outside India on fake bills of importing diamonds.
Earlier, the ED had registered a case under Foreign Exchange Management Act (FEMA). Now another case has been filed under the PMlA, sources said.