ED arrests ‘hawala dealer’ in case linked to Shabir Shah

The sources said Wani was arrested as his name had cropped up during Shah’s interrogation and the ED needed to confront the two to verify certain information. Shah was arrested by the ED on July 26 in connection with an August 2005 case in which the Special Cell of Delhi Police arrested Wani, who had claimed that he passed on Rs 2.25 crore to Shah. Wani was arrested allegedly with Rs 63 lakh, received through hawala channels from the Middle East, and a large cache of ammunition on August 26, 2005.

During questioning, Wani is learnt to have told police that of the Rs 63 lakh, Rs 50 lakh was to be delivered to Shah, Rs 10 lakh to Jaish-e-Mohammad area commander in Srinagar, Abu Baqar, and the rest was his commission. Interestingly, Wani was acquitted of terror funding charges in this case and convicted of only possession of ammunition under The Arms Act.

Based on the Delhi Police case, however, the ED had registered a criminal case under Prevention of Money Laundering Act against Shah and Wani then. It has now begun to identify properties belonging to the accused to ascertain if they were bought with proceeds of crime.