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It is a well known fact that hawala method is opted by the corrupted and business giants to convert black into white assets. So far, lakhs of crore have been transferred via this method but most of the culprits escaped from legal bounds.

The recent reported by TOI, stated $700 million sent out of the country in the process of legal hawala. The term legal hawala is little bit new, but this is well established method to convert black into white. In this process, fake companies opens the bank accounts and rotates the money from one account to other, at last that amounts to large in one bank account. Finally the bulk is sent out of the country, mainly to trading hubs like Dubai and Hong Kong.

The Enforcement Directorate (ED) recently seized Rs 83 lakh from a bank locker in south Mumbai. The case is one of the three, found by the ED. The agency believes that thousands of crores is illegally sent abroad online either as advance remittance for import of goods or by using forged import documents submitted to banks.

The recorded total of $700 million (about Rs 4,400 crore) is highlighting the loopholes in the system, ED also believes the actual amount could be three times that is found.

Foreign aides of the racketeers are helping them to do transactions in other countries to convert them a white affair. The weaker monitoring on firms in India and their invisible business paving way for higher transactions connected to political, industrial, and civil society organizations.

-Kannamsai