Fighting black money in India inside: Karnal Singh, the chief

of the ED, on the Podcast by Raj Shamani.

The war on black money, corruption and financial crimes that India has to fight is a common topic, however, not often do we actually get to know how exactly these activities actually operate on an insiders level. Former Enforcement Directorate (ED) Chief, Karnal Singh, gave some of the most authentic information on money laundering, hawala networks, raids, bribes and the evolving nature of economic crime in India in a strong and opioid conversation on the Raj Shamani podcast.

It was not merely an interview but a masterclass in the operation of a criminal money trail, how criminals attempt to beat the system and how law enforcement agencies trace and solve these cases quite accurately.

The Black Underbelly of Money Laundering.

Karnal Singh made it clear that money laundering does not only deal with turning black money to white. It is a three process, i.e., placement, layering, and integration.

• He emphasized the idea that nowadays criminals employ various techniques:
• Shell companies
• Fake import–export invoices
• Real estate deals
• Cryptocurrency mixing

Hawala is inter-border transfer.

He has pointed out that money laundering is not a victimless offense. When an individual launders money, the economy will be affected. That, he said, money might have been spent on the common good, roads, hospitals, education, but it is used to commit crime.

His description made listeners realize that the effects of financial crime have a long-term impact much deeper than the mere avoidance of taxes.

Hawala: The invisible Money Highway.

Part of the discussion that was also the most intriguing to me was the one about hawala, the informal system of money transfer that exists outside of the banking system.

Singh described the use of personal trust networks by the hawala operators, rather than money transfer. A person in Dubai can hand over the money to a hawala agent and a few hours later a person in Delhi is handed over Cash without any bank statements, no electronic records and no paper work.

As per Singh, such system usually finances:

• Illegal gold trade
• Drug trafficking
• Terror financing
• Subterranean business colonies.

He observed that hawala is very hard to crack since the system was constructed wholly based on loyalty, oral codes and networks that were established many generations ago.

The Reality of how Raids occur: the “Inside ED” perspective.

Most of the individuals envision ED raids as spontaneous, theatric actions. Singh demystified this fact: that raids are not spontaneous, it is supported by several months of surveillance and forensic audits, call-data mapping and digital tracking.

He stated that a normal ED operation follows:

• Input gathering
• Financial intelligence analysis.
• Cross-agency data matching
• Covert observation
• Concurrent attacks at different sites.

He further described how teams keep secret and sometimes they cover up to days without even notifying senior officers so that they do not leak.

The most important message that Singh gave was that agencies do not raid in order to harass, they do it to trace assets generated by illegal money. We follow the money trail but not the man, he answered.

Bribes, Pressure: Does It Influence ED?

Raj Shamani posed the question that lots of Indians would ask: Is there any political pressure or a bribe behind the investigations?

In his turn, Karnal Singh answered that the ED possesses high-level internal supervision and responsibility. He explained that:

• All significant actions are recorded in the books.
• There are numerous stages that are supervised by courts.
• Internal influence is avoided by rotating officers.
• Online monitoring eliminates interference.

He acknowledged that any system may have corruption, but the ED has some of the most effective protection within investigative agencies.

His sincere yet assertive voice served to bust a few of the myths developed concerning ED functioning.

Black Money: Why It Will Never Go away.

Singh described black money by stating that:

• People want to avoid taxes
• There is still high cash-based business.
• Real estate loopholes exist
• Funding of politics is not transparent.

But he has also indicated that India has achieved gigantic stride in the past decade by:

• Digitization
• GST implementation
• Bank KYC norms
• PAN–Aadhaar linking
• Markets International financial data sharing agreements.

He says that the struggle is not yet over but India is headed in the right path.

Thoughts on being a Young Entrepreneur.

In conclusion, Singh offered strong recommendations to young entrepreneurs in the business and creators of content:

• Stay transparent
• Keep proper documentation
• Don’t try shortcuts with cash
• Beware of dubious investment deals.
• Make payments through the law.

He cautioned that minor financial errors can turn out to be massive legal issues. Raj Shamani further maintained that the modern day entrepreneurship if they want long-term success.

A Conversation India Needed

The podcast was more than just a discussion — it was a rare educational moment. Karnal Singh broke down India’s financial crime landscape with simplicity, depth, and decades of experience. Raj Shamani did an excellent job asking the questions that today’s youth genuinely want answered.

The episode serves as a reminder that the fight against corruption is ongoing. But with stronger systems, modern technology, and awareness among citizens, India is better equipped than ever.