ED Arrests I-PAC Co-Founder Vinesh Chandel as Probe Uncovers Sophisticated Money Laundering Web Linked to Bengal Coal Scam

According to claims made by the ED on Tuesday, I-PAC, a firm known for its work with the Trinamool Congress, acted through its directors to create a complex web of financial transactions specifically designed to convert black money into white. The probe agency identifies Chandel as the central figure behind all key decisions, asserting that he controlled the company’s financial and operational affairs and played a direct role in routing illicit proceeds through the system. The investigative findings reveal a dual-tranche payment method where I-PAC received funds via banking channels such as checks and online transfers, alongside a parallel stream of cash or non-banking channels.

Documents obtained by the agency reveal entries resembling checks that account for 50% of the transactions, allegedly including funds received from political parties. The ED further alleges that I-PAC generated numerous bogus invoices to justify funds received from various companies despite no actual services or consultancy being rendered. These fraudulent transactions allowed illicit funds to be routed through multiple layers before being integrated into the system as legitimate earnings. The investigative agency informed the court that several discovered entries lacked any genuine business purpose, making it evident that I-PAC functioned as a conduit for circulating funds.

The ED asserts that a 'Hawala' network was also utilized in this scheme to transfer cash via illicit channels. Statements recorded under the Prevention of Money Laundering Act (PMLA) have reportedly revealed that certain individuals associated with I-PAC were facilitating these 'Hawala' transactions. This establishes that the company deliberately maintained a dual system, utilizing the banking system on one hand and unofficial channels on the other, to conceal the true source of funds and portray them as legitimate business income. Furthermore, the ED alleges that Chandel provided false and misleading statements during interrogation, denied the existence of cash transactions, and misrepresented the company’s operations.

The agency further claimed that Chandel and other directors orchestrated the deletion of crucial emails and financial data from employee accounts in an effort to destroy evidence. Earlier, on April 2, the agency conducted searches at 11 premises across Hyderabad, Delhi, Mumbai, Bengaluru, Vijayawada, and Ranchi, covering I-PAC offices, director residences, and linked entities, leading to the recovery of material related to money laundering. This case has triggered a sharp political confrontation between the Trinamool Congress and the BJP, eventually reaching the Supreme Court. Meanwhile, the Delhi High Court on Monday heard arguments in pleas filed by I-PAC directors Rishi Raj Singh and Pratik Jain seeking the quashing of ED summons, with the matter scheduled for further hearing on April 17. This unfolding legal battle underscores the significant impact of the investigation on the intersection of political consultancy and financial integrity in India.