19-July-2024

On July 16, 2024, the Directorate of Enforcement (ED) executed a series of search operations across Punjab, Delhi, and Madhya Pradesh. The raids targeted seven locations linked to the liquor company M/s Malbros International Pvt Ltd and its former Director Gautam Malhotra in connection with a high-profile money laundering investigation.

The investigation was sparked by a Criminal Complaint from the Punjab Pollution Control Board against M/s Malbros International Pvt Ltd. The complaint, lodged in the Court of Chief Judicial Magistrate, Ferozepur, accuses the company of violating the Water (Prevention and Control of Pollution) Act, 1974. The allegations include the illegal discharge of industrial effluents into bore-wells at the company’s factory site, leading to severe soil and groundwater contamination. This environmental crime is reported to have caused public health risks and cattle deaths in the surrounding areas.

As part of the ongoing probe, the ED uncovered evidence that the funds generated from these environmental violations were used to support the company’s business ventures. During the search operations, ED officials recovered Rs. 78.15 Lakh in unaccounted cash, along with various digital devices and incriminating documents. These findings were seized under the Prevention of Money Laundering Act (PMLA), 2002.

The ED’s investigation aims to trace the money trail and further explore how illicit funds were funneled into the company’s business activities. This operation marks a significant step in tackling environmental crimes and financial misconduct.