The money seized by the Income Tax officials during a raid in Kolkata. The cash was meant to be transferred to the UAE.

The dreaded D-Company is suspected of having a role in the Rs 1,000-crore hawala racket that was unearthed by Income Tax officials in Kolkata on Thursday.

The initial investigation has revealed that the cash seized was meant to be transferred to the United Arab Emirates (UAE).

Based on the Intelligence Bureau (IB) inputs that Rs 100 crore was being routed to the UAE, the Central Board of Direct Taxes (CBDT) seized 60 sacks of Indian currency in raids carried out in West Bengal on Thursday morning.

It is estimated that more than Rs 50 crore has already been accounted for.

Sources said the modus operandi indicated that the money laundering group has links with Dawood Ibrahim, India’s most wanted criminal who has been based in Pakistan since 1993.

“All such money laundering syndicates which route money to UAE or Saudi Arabia have links with D-Company,” said an intelligence official.

The money was generated through lottery schemes in Tamil Nadu and West Bengal and kingpins from the two states are involved in the racket that has links with the underworld, sources said.

Intelligence agencies have identified five businessmen who are alleged to be the kingpins of the international money laundering syndicate.

“Their business enterprises are a front for money laundering. Their links in the UAE and D-Company are being investigated. They run small businesses, but the real objective is money laundering,” the intelligence official said.

Sources said the money laundering network is being controlled from Pakistan through fraudulent lottery schemes which dupe people across India.

In a report submitted to the Ministry of Home Affairs (MHA) by IB, the swindle is estimated to be over Rs 4,000 crore as the money is routed to Pakistan through hawala channels via Saudi Arabia and the UAE.

Sources said “lottery king” Santiago Martin, who has been in the crosshairs of CBI, is also among the people who are under the scanner of investigative agencies. More than 20 cases have been filed against him in Kerala, Karnataka and Tamil Nadu.

The companies that were raided on suspicion of being part of the international money laundering gang include General Systems which is run by S Nagarajan, a Tamil Nadu-based businessman.

The premises of another West Bengal-based company - Future Plus Enterprise - run by Jitendra Mehta and Babla Bhai were also raided by sleuths who seized huge amounts of cash from there. Divjyoti Distributors in Siliguri was also raided.

Sources said the money laundering network is being controlled from Pakistan through fraudulent lottery schemes which dupe people across India.

“It is suspected that the hawala lottery scam is worth at least Rs 1,000 crore,” said an intelligence official.

Sources said that over Rs 50 crore has been accounted for till now according to initial estimates, but the amount could be much higher once the exercise of counting the currency is over.

Intelligence agencies are gathering more information about these companies. The seizures were made at 127 B, Sarat Bose Road, 75/3 S N Roy Road and Thakurbhai Road, Kolkata. Money was also seized from Teesta Distributor, Ananda Mangal Sqare, SF Road Siliguri. Soures said the cash was stashed in travel and gunny bags and also in a six-foot almirah in one of the premises raided by the agency.

According to intelligence officials, more raids are expected in other parts of the country to track the remaining amount.

“It is possible that some amount has already gone out of the country. But, we hope to recover more cash and also identify the masterminds of the racket,” an intelligence official said.

According to IB, Rs 4,193.39 crore is the estimated proceeds of money laundering racket controlled from Pakistan. IB in a report has explained how Pakistan-based fraudsters, who are part of the money laundering syndicate, ask their Indian agents to call up people across the country informing them of winning lotteries.

The victims are given a bank account number and asked to deposit processing charges to claim the lottery amount. Once the money is deposited, Indian agents withdraw the amount and send it through hawala to Pakistan via Saudi Arabia and UAE. The Indian agents ‘hire’ bank accounts and ATM cards from different individuals by paying them some amount in return.