The ED arrested Khagesh Kachhwal and Varanasi Dileef in a money laundering case for acting as entry operators and facilitating large-scale bogus LC discounting and providing large accommodation entries to assist money laundering activities of those involved in bank frauds. Khagesh Kachhwal and Varanasi Dileef were arrested and produced before the special PMLA court on June 26. The court granted eight days of custody of the accused persons to the ED.
The ED initiated money laundering investigation on the basis of an FIR registered by CBI, Chennai, against RE Cables & Conductors Private Ltd (RECC) and others for alleged misappropriation of SBI funds and causing wrongful loss to the tune of Rs 74.8 crore.
Investigation by the ED has revealed that Khagesh Kachhwal and Varanasi Dileef are one of the biggest entry providers in Hyderabad under whose assistance and guidance, RECC had fraudulently misutilised the credit facilities availed from banks.
Khagesh Kachhwal and Varanasi Dileef are having a number of shell entities under their control. Their modus operandi would be RECC would open various LCs in the name of shell entities controlled by the duo under the guise of short-term advances with the help of bogus documents. No goods/materials are supplied against such LCs. Subsequently, the LCs were…
