₹15.7-Cr fake artworks case: ED files chargesheet against five

The ED has charged an art dealer and four others in a ₹15.7 crore money-laundering case involving fake artworks sold to a US executive.

MUMBAI: The Enforcement Directorate (ED) has submitted a chargesheet against a city-based art dealer and four others in a money-laundering case where fake artworks were allegedly sold to a senior executive of a US-based private equity firm, duping him of nearly ₹15.7 crore.

₹15.7-Cr fake artworks case: ED files chargesheet against five

Filed recently in a special Prevention of Money Laundering Act (PMLA) court, the chargesheet names art dealer Rajesh Rajpal, his Rare Art Gallery, lawyer Vishwang Desai, and two bullion traders, people involved in the sale of high purity metals, as accused in the case.

The ED’s probe began after the senior executive, Puneet Bhatia, filed a complaint with the Tardeo police. As per the FIR, in December 2023 the accused sold Bhatia fake paintings of renowned Indian artists like Jamini Roy, MF Husain, among others, and even gave him fabricated certificates of authenticity for the pieces. According to ED, while the art pieces were initially sold for a total of ₹17.9 crore, the proceeds of the crime amount to ₹15.7 crore, since Rajpal had repaid the rest to Bhatia after he filed a complaint about the paintings.

In March last year, the ED searched six locations including the art dealer’s house in south Mumbai and seized several digital devices and documents that revealed the modus operandi of the cartel involved in trading fake art. The operation involved passing off copies of renowned art pieces as the originals by generating fake authenticity certificates and provenance certificates that documented the piece’s history of ownership. The racket also allegedly involved several prominent art galleries and individuals in the field of curation. ED officers said the fake artworks included pieces by Jamini Roy, MF Husain, FN Souza, Jahangir Sabavala, SH Raza, NS Bendre, and Ram Kumar, among others.

Investigations have revealed that the cartel allegedly operated with the help of antique art collectors, small-time artists who created the fake replicas, and people claiming they were descendants of royal families.

The ED found that Bhatia had transferred ₹17.9 crore in multiple transactions to the account of Art India International, owned by Rajpal. From that amount, ₹4.91 crore was transferred to several accounts including those of Shree Namo Bullion and Manish Gold Palace, but ED officials said those were mere “paper transactions” with no trace of the alleged silver articles, utensils, gold articles, and bullions bought with that money. The ED also found that these entities returned the money to Rajpal in cash along with fabricated invoices.

While the agency did not recover money related to the crime from Desai, ED officers said that he had allegedly “assisted Rajpal by facilitating fraudulent art transactions while curating art options, negotiating terms, and vouching for the authenticity (of the art) before prospective buyers.” ED officers added, “By allegedly positioning himself as a trusted intermediary, the lawyer lent a façade of genuineness to the fraudulent transactions.”

Responding to ED’s allegations against him, Desai told HT, “The complaint does not contain even a single statement that I was involved in the money trail or money-laundering. I only introduced the parties (to each other),” Desai said. He added that the “complaint” only alleges about his “limited role”. Rajpal declined to comment on the issue, and told HT that he would have to first consult his lawyer, Desai.

In December 2023 too, Desai had denied the allegations against him while talking to HT. He had said, “I am not the person who sold the paintings to Bhatia,” and added that he had merely introduced Bhatia to the art dealer.

Earlier, on March 26, HT reported that a local court had rejected the closure report filed by the Tardeo police regarding the case. The court had upheld Bhatia’s petition which claimed that the police investigation had been unsatisfactory, and directed the Tardeo police to further investigate the matter.

The court will hear the matter on October 13 and review the ED’s charge-sheet.