ED holds searches in Mumbai in fake artworks case

The Enforcement Directorate said on Sunday it conducted search operations under the Prevention of Money Laundering Act (PMLA), 2002, at six locations in Mumbai for allegedly selling fake paintings. The operations were carried out on March 13 in a case involving Rajesh Rajpal and others.

During the search proceedings, digital devices and incriminating documents were seized which highlighted the operations of a cartel, including trading of fake artwork, generation of fake authenticity and provenance certificates, transfer of money through cash and involvement of other prominent art galleries and individuals.

The ED initiated an investigation based on a first information report registered by the Tardeo police station under various Sections of the Indian Penal Code wherein one Puneet Bhatia had alleged that Mr. Rajpal and Vishwang Desai had conspired to financially dupe him by defrauding him to the tune of ₹17.90 crore by selling fake paintings to him along with the forged and fabricated certificates of the paintings.

The ED also unearthed a cartel involving a prominent art gallery in South Mumbai, a ace corporate lawyer and bullion traders. This included works of ‘national treasure’ artist Jamini Roy and others including M.F. Husain, F.N. Souza, Jahangir Sabavala, S.H. Raza, N.S. Bendre, and Ram Kumar.

It was found that the cartel operated with the help of people claiming fake origins with royal kingdoms, antique art collectors and smalltime artists who created these fake replicas and projected it to be authentic with the help of fake certificates of authenticity, provenance and affidavit of ownership.

The money trail in the case has revealed that the money received was sent by domestic hawala channels to members of the cartel in the form of commission or free/discounted artwork. Some cash so generated from sale of fake artworks was used to purchase antiques. Further investigation is under progress, said the ED officials.