ED makes first arrest under Money Laundering Act

Enforcement Directorate (ED) sleuths arrested Ashok Ramchandra Chhugani yesterday, and charged him
with cheating.

Chhugani's arrest is the first made under the Money Laundering Act 2002 (MLA).

"Chhugani is a cheat. He defrauded the government to the tune of Rs 1.2 crore.

There are several cases of fraud against him. His arrest is the first under the MLA," said a senior ED official.

Investigations indicate that Chhugani laundered money through the diamond trade.

He allegedly used the same consignment of diamonds to avail duty refunds on multiple occasions, thus cheating the government of revenue.