The Enforcement Directorate (ED) has arrested Badshah Majid Malik, a history-sheeter and kingpin of Red Sanders smuggling on money laundering charges.

The ED had initiated a money laundering investigation on the basis of seizure of 7.8 metric tons of Red Sanders worth Rs 3.12 crore by the Directorate of Revenue Intelligence (DRI), the ED said in a statement.

“The said consignment was being exported on the basis of forged documents in the names of companies at SEZ and had been mis-declared as Fabric Glue/Radiators/Assorted Colors,” it said.

Investigation by the DRI brought out that Malik was the kingpin of the smuggling syndicate that had already smuggled 17 more consignments of Red Sanders worth Rs 48 crore out of India in this manner.

Red Sanders have been listed in Appendix II of the CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) and export of Red Sanders from India is restricted as per Foreign Trade Policy.

During the money laundering investigation by the ED, a search operation at eight different locations in Mumbai and suburbs including the residence of Malik was carried out on December 20 and he was arrested the next day.

During the searches, various incriminating documents were seized. Subsequent to the searches, Malik was summoned to the office of Enforcement Directorate. During the recording of the statement, Malik was non-cooperative, evasive and did not divulge any relevant information leading to his arrest on Tuesday and he was produced before the Special Court at Mumbai and remanded to ED custody till Friday, it added.