ED Investigates Paplaj Foreign Trade LLP in Rs 2800 Crore Money Laundering Case

The Enforcement Directorate (ED) has conducted searches in four cities in Gujarat and Maharashtra as part of a Rs 2800 crore money laundering probe involving Paplaj Foreign Trade LLP. The searches were carried out under the provisions of the Foreign Exchange Management Act (FEMA), 1999.

Search Operations

ED’s Surat-based unit conducted these operations at the premises of Paplaj Foreign Trade LLP, its partners Somabhai Sunderbhai Meena and Ojaskumar Mohanlal Naik, and its associates in Surat, Vadodara, Mumbai, and Pune. Various incriminating documents and electronic devices were recovered and seized during the searches.

Investigation Findings

The investigation revealed that Paplaj Foreign Trade LLP had overvalued the import of diamonds and remitted Rs 2800 crore between July 2023 and March 2024. The company received this amount from non-existent entities in Surat, Delhi, Mumbai, and Pune and remitted it to eight entities based in Hong Kong. These entities were found to be shell entities providing accommodation entries through complex transactions disguised as diamond sales.