Chennai court sentences man to 4 years RI in money laundering case: ED

A special court in Chennai on Wednesday sentenced a man to four years of rigorous imprisonment under the anti-money laundering law for using ''forged'' import documents to send funds worth Rs 34.94 crore abroad, the Enforcement Directorate (ED) said.

The special court, which tries cases investigated by central agencies like the CBI and the ED, also imposed a fine of Rs 6 lakh on A A S Haroon Rasheed. It ordered that he will undergo rigorous imprisonment for a further period of two months if he defaults on the payment of the fine, the agency said in a statement.

The court has convicted Rasheed under the Prevention of Money Laundering Act (PMLA), it said.

He was arrested by the ED on March 21, 2018.

''The accused is a part of a gang of people operating with complete anonymity in the matter of sending the proceeds of crime under the guise of permissible merchandise imports, without making corresponding imports into the domestic tariff area (DTA), by using forged import documents like bills of entry...,'' the agency said.

There are 57 such business entities involved in this scam of Rs 3,500 crore, it said.

Rasheed is accused of ''sending proceeds of crime'' worth USD 5,785,144 (equivalent to Rs 34.94 crore) abroad.

The case had cross-border implications. Therefore, the special court, the High Court as well as the Supreme Court consistently denied bail to the accused considering the seriousness of its implication on the financial system and the sovereignty of the nation, the ED said.

The money laundering case was filed by the agency after taking cognisance of a September 2017 FIR of the CBI against the accused.