Drug cartels laundering money through shell cos, finds TGANB | Hyderabad News
Hyderabad: In a major breakthrough, Telangana Anti Narcotics Bureau (TGANB) has unraveled a complex money laundering network woven by drug cartels to siphon off crores of rupees earned from illegal drug sales. Investigators, while tracking the financial trail of drug peddlers, have identified multiple shell companies operating in Mumbai and Delhi, allegedly funnelling drug money into foreign accounts.
Officials revealed that Nigerian and Palestinian individuals were at the centre of this network, making transactions that ensure the illicit funds reach suppliers abroad. Investigators also stumbled upon a major racket involving foreign nationals, illegally diverting money to foreign countries. While three Nigerians were arrested for laundering money, cocaine and MDMA worth Rs 12.5 lakh were recovered from them.
The money laundering racket first came to light during the investigation of Mohammed Osman alias Faisal, a key drug peddler currently lodged in Goa’s Colvale jail. Faisal’s inter-state network led authorities to several suspicious firms—Mr X, King Enterprise, and Riya—which were registered as legitimate businesses but were allegedly being used to illegally transfer drug proceeds overseas. These firms opened current accounts in private banks, serving as conduits to launder money out of India.
According to officials, Faisal had expanded his operations in Mumbai with the help of an associate named Milan, who played a pivotal role in setting up these shell companies.
One of the key figures in this operation is Awni Hassan Abu Alkas, a Palestinian national residing in Delhi, who allegedly ran a vast drug network with the assistance of Nigerian nationals and Indian associates. His syndicate, including Faizal, Pappu, Syed Alkafri, and others from Hyderabad, lodged in Goa jail, supplied drugs in Bengaluru, Goa, and Hyderabad.
Authorities say drug cartels operating in India rely on an intricate system to smuggle hard drugs like cocaine, MDMA, and ecstasy into the country while ensuring that payments reach their foreign suppliers.
“Drug cartels must send money out of India to pay for shipments of cocaine, MDMA, and ecstasy. This is a well-established practice. Without disrupting this flow of illicit funds, it is nearly impossible to dismantle the foreign-controlled drug trade,” a senior police official told TOI.
Nigerian link
Investigators have also uncovered the role of Igwe Obataobie alias Igwe Elvis, a suspected Nigerian national based in Bengaluru. He is believed to be a key operator in ensuring that drug earnings are safely transferred to various Nigerian bank accounts.
Drug peddlers accept payments through cash and online transactions using mule accounts. The funds are then routed through multiple shell companies before being sent overseas, making it difficult for authorities to track the final destination.
Officials believe that the network is far more extensive than initially suspected. Several names have emerged during the probe, but investigators face challenges as arrested suspects refuse to divulge details about their accomplices.
Authorities are now closing in on the foreign nationals orchestrating these money laundering operations and are expected to make arrests soon.
Officials revealed that Nigerian and Palestinian individuals were at the centre of this network, making transactions that ensure the illicit funds reach suppliers abroad. Investigators also stumbled upon a major racket involving foreign nationals, illegally diverting money to foreign countries. While three Nigerians were arrested for laundering money, cocaine and MDMA worth Rs 12.5 lakh were recovered from them.
The money laundering racket first came to light during the investigation of Mohammed Osman alias Faisal, a key drug peddler currently lodged in Goa’s Colvale jail. Faisal’s inter-state network led authorities to several suspicious firms—Mr X, King Enterprise, and Riya—which were registered as legitimate businesses but were allegedly being used to illegally transfer drug proceeds overseas. These firms opened current accounts in private banks, serving as conduits to launder money out of India.
According to officials, Faisal had expanded his operations in Mumbai with the help of an associate named Milan, who played a pivotal role in setting up these shell companies.
One of the key figures in this operation is Awni Hassan Abu Alkas, a Palestinian national residing in Delhi, who allegedly ran a vast drug network with the assistance of Nigerian nationals and Indian associates. His syndicate, including Faizal, Pappu, Syed Alkafri, and others from Hyderabad, lodged in Goa jail, supplied drugs in Bengaluru, Goa, and Hyderabad.
Authorities say drug cartels operating in India rely on an intricate system to smuggle hard drugs like cocaine, MDMA, and ecstasy into the country while ensuring that payments reach their foreign suppliers.
“Drug cartels must send money out of India to pay for shipments of cocaine, MDMA, and ecstasy. This is a well-established practice. Without disrupting this flow of illicit funds, it is nearly impossible to dismantle the foreign-controlled drug trade,” a senior police official told TOI.
Nigerian link
Investigators have also uncovered the role of Igwe Obataobie alias Igwe Elvis, a suspected Nigerian national based in Bengaluru. He is believed to be a key operator in ensuring that drug earnings are safely transferred to various Nigerian bank accounts.
Drug peddlers accept payments through cash and online transactions using mule accounts. The funds are then routed through multiple shell companies before being sent overseas, making it difficult for authorities to track the final destination.
Officials believe that the network is far more extensive than initially suspected. Several names have emerged during the probe, but investigators face challenges as arrested suspects refuse to divulge details about their accomplices.
Authorities are now closing in on the foreign nationals orchestrating these money laundering operations and are expected to make arrests soon.
