Investigations into the gold seizure case in Paldi, Ahmedabad has unravelled a major black money laundering network operating behind the scenes.

Gujarat Anti-Terrorism Squad (ATS) and Department of Revenue Intelligence (DRI) sleuths had raided a closed flat in Paldi’s Mahalaxmi area and recovered 100 kg of gold and around ₹70 lakh in cash on Monday afternoon.

Authorities have now uncovered that Mahendra Shah, father of the main accused Megh Shah, is allegedly one of Gujarat’s biggest black money converters, running an operation to turn unaccounted cash into legal assets for a 15% commission.

Sources indicate that Shah’s network of over 500 entry operators was not only involved in laundering crores of rupees, but also played a key role in the illegal import of gold through hawala transactions. Investigators suspect that the gold recovered in the recent raids was procured using laundered money.

Investigators have also discovered a connection between Mahendra Shah and Sanjay Shah, who was earlier caught with ₹20 crore in cash. 

This has uncovered a wider network of financial crimes, including stock market fraud, money laundering, and high-interest lending to builders.

With huge amounts of cash and gold recovered, agencies are tracing the financial trail and suspect more individuals and businesses to be linked to the racket. Further arrests and raids are expected as investigators dig deeper into one of Gujarat’s largest money laundering and gold smuggling syndicates.