Gold Heist Case: ED Expands Probe As Canadian Police Reach Out, Panesar’s Hawala Network Under Scanner

With international scrutiny mounting in the case, the ED seems to be tightening its grip, digging deeper into illicit financial networks that have long operated in the shadows. With several pieces of evidence emerging, the crackdown is only set to escalate, said a source in the agency.

The $20-million ‘Project 24Karat’, which the Canadian Police chargesheet has called the “largest gold heist in the history of Canada", saw a freah twist almost after one-and-a-half years as the Enforcement Directorate expanded its probe to look at the money trail for the gold smuggling and an auxiliary weapon-smuggling case across the Canada-US border. The weapon-smuggling case occurred around the same time and involved almost the same set of people. The ED suspects Khalistani links and an alleged vast money laundering network in India.

The theft occurred at the Toronto Pearson International Airport in April 2023, as a gang of smugglers stole over 400 kg of gold. The ED, which registered an Enforcement Case Information Report (ECIR) on February 17 based on chargesheets from the US and Canadian police in the gold and arms smuggling cases, has initiated a probe into weapon smuggling, with at least four Indian-origin suspects emerging in both the investigations.

There are suspicions of links with ‘Khalistani militants’ as the gang was intercepted by the US police at the US-Canada border and was found to be carrying “65 illegal weapons, including 11 stolen, two fully automatic, and one with the serial number obliterated".

The ED raided the properties and premises of Panesar, one of the suspects in the case, on the outskirts of Chandigarh on Friday. It is also probing the trail of illicit funds, with investigators suspecting the use of shell companies and hawala routes to funnel money from the heist into illegal activities in India.

Hunt For Hawala

The directorate’s probe into Panesar’s alleged links with a group of hawala operators pointed to a complex international money laundering syndicate. Following the interrogation of Panesar and his wife, and further probe, the investigators have stumbled upon a few “projects" through which Panesar allegedly laundered money.

The investigation further reveals that money laundering activities have been carried out not only within Canada but also across the Middle East, further complicating the global reach of the operation.

Hawala operation — an informal system used for transferring money across borders manually without the involvement of formal banking channels or electronic transactions — has been a crucial tool for money laundering. According to sources, the current investigation by the directorate also revealed that the Hawala network linked to Panesar and others operates between Canada, the Middle East, and potentially other regions, enabling the illegal movement of funds.

This transnational movement of the money trail could potentially be funding criminal activities such as arms smuggling, which has been a central focus of the investigation, the source added. With the collaboration of Canadian authorities and other international agencies, the ED is expanding its probe into the financial dealings that have allowed this syndicate to operate undetected for years.