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In a statement, the ED said it conducted the searches under the provisions of the Prevention of Money Laundering Act (PMLA) at six locations in Mumbai on March 13 in a case involving Rajesh Rajpal and others.
Digital devices and incriminating documents were seized during the searches and the seized items highlighted the operations of the cartel, including trading in fake artwork, generating fake authenticity and provenance certificates and transferring money through cash, with the involvement of prominent art galleries and individuals, the statement said.
The ED initiated its investigation on the basis of an FIR registered at the Tardeo police station under various Indian Penal Code (IPC) sections, wherein one Puneet Bhatia had alleged that Rajpal and Vishwang Desai had conspired to financially dupe him by defrauding him to the tune of Rs 17.9 crore through the sale of fake paintings along with forged and fabricated certificates.
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These included artwork of ”national treasures” — Jamini Roy, M F Husain, F N Souza, Jahangir Sabavala, S H Raza, N S Bendre, Ram Kumar and others.
It has come to light that the cartel operated with the help of people falsely claiming links with royal kingdoms, antique art collectors and small-time artists who created these fake replicas and projected those as authentic with the help of fake certificates of authenticity, provenance and affidavit of ownership, the statement said.
The money trail has revealed that amounts received were sent by domestic ”hawala” operators to the members of the cartel in the form of commission or free and discounted artwork.
Cash so generated from the sale of fake artwork was used to purchase antiques in connivance with bullion traders. Such antiques were then sold at auctions through reputed auction houses, proceeds of which were received in bank accounts, the statement said. Further investigation is under progress, the agency added.