New Delhi, Sep 21 (PTI) The Enforcement Directorate has arrested Kirshanu Sharda, an alleged middleman of suspended Punjab Police DIG Harcharan Singh Bhullar, in a money laundering case linked to a corruption probe against the senior police officer, officials said on Monday.

Sharda was arrested on September 18 under the Prevention of Money Laundering Act (PMLA), 2002, and sent to seven-day ED custody by a PMLA court in Chandigarh, an official statement said.

The ED initiated the money laundering investigation based on FIRs registered by the CBI's Anti-Corruption Branch against Bhullar, Sharda and others under provisions of the Bharatiya Nyaya Sanhita (BNS), 2023, and the Prevention of Corruption Act, 1988.

According to the ED, its investigation into the predicate offence prima facie established that Bhullar, the prime accused, operated through Sharda, who acted as his “conduit/middleman” for demanding and accepting illegal gratification.

In one instance, Rs 8 lakh was allegedly demanded from a complainant, of which Rs 5 lakh was accepted through Sharda, allegedly for settling a criminal case and allowing the complainant to continue his scrap business without police interference, the statement said.

The agency also said its investigation revealed that Sharda facilitated the receipt and movement of funds on behalf of Bhullar.

Searches conducted under Section 17 of the PMLA resulted in the seizure of Rs 8.35 lakh in cash and freezing of bank and post-office accounts and investments having a cumulative balance of around Rs 1.42 crore, it said.

Scrutiny of financial records and seized digital devices revealed unexplained cash deposits, investments and transactions, including transactions with Bhullar, besides prima facie indications of the involvement of other public servants, the statement said.

The agency said it was tracing the complete money trail and probing the involvement of other persons and entities in the generation, movement, concealment and utilisation of proceeds of crime.

The CBI arrested Bhullar in October last year in connection with the corruption case. PTI MHS ARI