Even underworld don Dawood uses shell companies for money transfer
Shell companies replace Hawala channels for illegal money transfers
Most of these firms operate out of Nepal, Bangladesh, Mauritius
Investigating agencies havelearnedaboutunderworld donDawoodIbrahim'sCorporate Money Transfer Network, which is very different from orthodoxhawalachannels.
Ibrahimhas been laundering moneythroughvarious shell companies instead ofhawala, the traditional means to transfer funds illegally.
These companies are registeredonthe names of close aides,relativesandafewtrustworthybusinessmen.
These shell companiesoperate out ofNepal, BangladeshandMauritius,and have offices intax-friendlycountries.
Income from illegal businesses and trades like extortion or drugs are moved out ofthecountrythrough these companies which do not have a direct criminal record,butareused only to transfer funds from one country to another.
To avoid problems in dealing with cash, D Company, asDawood Ibrahim's crime networkiscolloquiallyreferred to,operatesthrough all legitimate financial transactions like cheques and RTGS.
These shell companies operate only on paper and records loss in its balance-sheet to evade tax.
To look after the transactions of these Shell companies, Dawood has appointed a group ofmanagement graduateswho do not have any criminal background and a team of about 15charteredaccountants(CAs)basedin Karachiin Pakistan.
A core team of thesemanagement graduatesand CAs submititsreporttoIbrahim's associate,ChhotaShakeel,who later updates the crime syndicate head.
Indian agencies likeenforcementdirectorate(ED)and Directorate of Revenue Intelligenceare toinvestigateintoIbrahim'sproperties and such suspected shell companies.
ED may soon record the statement ofgangsterIqbalKaskar,who is in judicial custody now, in this connection.