Money laundering case: ED arrests Income Tax department official from Gujarat

Directorate of Enforcement (ED), Ahmedabad has arrested Santosh Karnani, Additional Commissioner of Income Tax under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA).

According to an official statement, Santosh Karnani was arrested on June 2 this year in furtherance of an investigation being conducted under the provisions of PMLA, 2002, in the matter of demand and acceptance of an undue advantage of Rs 30 lakh. ED initiated an investigation on the basis of an FIR registered by CBI, Anti-Corruption Bureau, Gandhinagar against Santosh Karnani under the Prevention of Corruption Act, 1988.

During investigation under the provisions of the Prevention of Money Laundering Act, 2002 it was revealed that initially, a bribe money of Rs 30 lakh was demanded and accepted by the accused Santosh Karnani, through an ‘Angadia firm’ (a courier company carrying cash between traders and businesses), named Dhara Angadia from Rupesh Balvantbhai Brahmbhatt of Safal Constructions Pvt. Ltd.

It further emerged that there had been multiple suspicious transactions amounting to at least Rs 4.25 crore between 2021 and 2022, involving the said account maintained with the said Angadia firm, the ED said.

“To unearth the whole conspiracy and identify and trace the proceeds of crime, custodial interrogation of Santosh Karnani had become necessary. Therefore, the application for the custodial interrogation of the suspect was filed by ED before the Designated Special PMLA Court, Ahmedabad. The court has granted the custody of Santosh Karnani till June 9, 2023, to ED”, the statement read.
Further investigation is underway.