Two hawala traders linked to Koda money laundering scam nabbed

RANCHI - Two hawala traders allegedly involved in the Rs.2,500 crore money laundering scam in which former Jharkhand chief minister Madhu Koda is allegedly involved were sent to 14 days judicial custody Thursday.

Manoj Punamiya and Arvind Vyas were arrested by the Enforcement Directorate (ED) and brought to Ranchi. They were produced in the Prevention of Money Laundering Act court of Jitendra Kumar Singh, who remanded them to 14 days judicial custody.

Arvind Vyas, talking to reporters, admitted that he met Madhu Koda once but denied he was involved in the money laundering scam. Similarly, Manoj Punamiya admitted he had met Vinod Sinha, a key Koda associate. Sinha is absconding since October last year.

Both Arvind Vyas and Manoj Punamiya are said to have sent more than Rs.500 crore to foreign countries through hawala (illegal routes). The money allegedly belongs to Koda and his associates Vinod Sinha and Sanjay Chaudhary. The Income Tax department and the Enforcement Directorate (ED) raided the houses of Koda and his associates in October last year and February this year.

The ED filed a case under the Prevention of Money Laundering Act against Koda and his associates.

The Central Bureau of Investigation (CBI) has filed an FIR against Koda and five ex-ministers in a disproportionate assets scam. The Jharkhand High Court Aug 4 ordered a CBI probe against them for amassing assets beyond their known sources of income.

The FIR was lodged in a special CBI court late Wednesday under different sections of the Prevention of Corruption Act and Indian Penal Code, including those for cheating and criminal conspiracy.