ED custody of third accused held in Malegaon money-laundering case extended till January 1

On Friday, the agency sought further custody of Memon, claiming that he was responsible for opening 19 of the bank accounts but was operating all the other accounts. The ED also claimed that Rs.14.60 crore in cash was handed over to a hawala trader and the money was transferred to Dubai.

The ED said the end user of the money is however yet to be ascertained. It sought to further interrogate Memon, claiming that it is within his knowledge that what is the source of the funds and why the amount was getting transferred to Dubai.

“Considering the nature of crime, coupled with the fact that until and unless ED will not know source from where the money came in the accounts opened by the accused and its end user, investigation cannot be completed in all respect. In case further ED custody is not given, it will hamper the investigation,” the special court said in its order.

Earlier this month, the ED arrested two others, Bhesaniya Vasim Valimohammed, a Surat resident and Mohammed Abdul Samad, claiming that they were working on the instructions of an absconding accused, to withdraw money.

Allegations were raised by BJP leader Kirit Somaiya, who claimed that benami bank accounts were used for funds during the election. So far, there has been no submission about this by the ED.