The Special Investigation Team (SIT) probing the alleged liquor scam in Andhra Pradesh has uncovered a sophisticated money laundering network operated by bullion traders from Mumbai's famed Zaveri Bazaar. The operation was designed to clean illicit kickback money generated from the state's distilleries.
The Palgota Family's Alleged Role
According to the remand report filed in court, the laundering network allegedly revolved around the Palgota family. The key figures identified are Ronak Kumar Jasraj Palgota, his brother Chetan Kumar, and their father Jasraj. This family operates a cluster of bullion and jewellery firms in Mumbai's prime jewellery market.
Investigators state that this network acted as a crucial financial bridge. It connected distilleries in Andhra Pradesh with the ultimate recipients of illegal payments. The method involved using ghost companies, fabricated invoices, and layered transactions to mask the origin of the funds.
Shell Companies and Fake Invoices
The SIT's findings are specific. Three distilleries — Adan distilleries, Leela distilleries, and SPY Agro — transferred a total of Rs 77.55 crore to four shell companies based in Mumbai. The paper trail showed these payments were camouflaged as legitimate business transactions for cloth and polyester film.
In reality, no goods were ever bought or sold. The entire setup was a sham to legitimize the movement of black money. The operation was reportedly coordinated by an individual named Anil Chokhara (A-49).
Chokhara informed investigators that Ronak and Chetan Palgota approached him. They requested him to arrange bank accounts and companies capable of handling nearly Rs 100 crore. The mandate was to launder this massive sum quickly and discreetly, avoiding any regulatory scrutiny.
The Laundering Mechanism and Gold Connection
Chokhara allegedly complied by floating shell companies using documents obtained from unsuspecting individuals. He then created fake GST invoices for purchases, generated corresponding e-way bills, and systematically moved money from these shell entities into bullion firms linked to the Palgota family.
SIT documents reveal a larger scale. The Palgota-linked firms received not just the Rs 77.55 crore from the three named distilleries. They also processed hundreds of crores more through other shell firms that were part of the same laundering chain.
The converted money was allegedly handed over as cash and gold to Ronak and Chetan. Sometimes, it was delivered directly to persons connected to the distilleries. Investigators say the bullion route was chosen deliberately. It allowed for the quick conversion of large cash sums into easily movable assets like gold bars or jewellery. This gold was then transported to Andhra Pradesh through informal channels.
Ronak Kumar Jasraj Palgota was arrested on Tuesday night at Gannavaram airport near Vijayawada. He was produced before a local court on Wednesday and remanded to custody. The probe continues to unravel the full extent of the network and identify all recipients of the laundered funds.
