attempt to defraud a person or group by gaining their confidence, especially for making a quick profit.
It's a form of banking. The possible origins of Hawala are in India. It typically avoids the Western world's financial countermeasures. Money transferring is based on owner system & human interaction is more critical. The funds transfers are quick, safe, secure and anonymous. There are no paper trails, and taxation is generally avoided. criminals use Hawala system to transfer the money because it is not easy to track the money. 9/11 is the biggest example for this. Someone working in the US wants to send some of his/her pay to family in the India; this would be very legit. This is known as "white" Hawala. The criminal, or terrorist, who take advantage of this financial system is called "black" Hawala.
The Hawaladars are the agent who conduct their clients transactions and move the funds around for them. This Hawaladars get some commission from their clients for transfer of money.
HAWALA SCANDAL
Hawala scam was probably the first scam that gave the public an idea of the loot of national treasure that was being implemented by the top politicians. The scam revolved around the payments that the politicians received from Hawala brokers , the Jain brothers SK Jain, NK Jain and BR Jain. Payments was being channelled to Hizbul Mujahideen militants in Kashmir. An arrest of two Kashmiris led to a raid revealing evidence of large-scale payments to national politicians.
However the Jain brothers were not detained for a day, nor charged under TADA while the Kashmiris were convicted and put behind the bars for years. This anomaly showed that the system was not even- handed. It was a US $18 million bribery scan, which came in the open in 1996. Vineet Narain was responsible for bringing the Hawala scandal to light. The CBI seized their diaries in which the accounts of payments were kept.
115 top bureaucrats were identified as having participated in the scam. No action was taken against them due to lack of hardcore evidence. However, the serious TADA case turned into a simple corruption case for the politicians. An important figure in the hawala network was Moolchand Shah, an alleged associate of underworld don Dawood Ibrahim. He was arrested by CBI under TADA. The Supreme Court released him on bail. Strangely, the state did not pursue his case further, and the prosecution was dropped without any apparent reason.
TOP POLITICIANS INVOLVED IN HAWALA LK Advani(the Leader of Opposition at that time) The former Union Minister,P. Shiv Shankar Janata Dal (U) president Sharad Yadav Gov MP Balram.Jakhar Senior politician and former Union Minister,V.C. Shukla Former Delhi CM Madan Lal Khurana AND MANY MORE WHO GOT WHAT AS PER JAIN DIARY
LK Advani Rs 68.5lakh Bhartiya Janata Party Arif Mohd Khan Rs 7.5 crore Independent Arjun Singh Tiwari Rs 10.5lakh Congress Yashwant Sinha Rs 21lakh Bhartiya Janata Party Kalpnath Roy Rs 54.7lakh Congress Devi Lal Rs 50 lakh SJP Pradeep Kumar Rs 14.6 lakh SJP VC Shukla Rs 65.8 lakh Congress Balram Jhakhar Rs 61 lakh Congress Madhavrao Scindia Rs 75 lakh Congress RK Dhawan Rs 50 lakh Congress Sharad Yadav Rs 5 lakh Janata Dal
Jafar Shareef Rs 15 lakh Congress Buta Singh Rs 7.5lakh Congress Kamal Nath Rs 22 lakh Congress Arvin Netam Rs 50 thousand Congress AK Sen Rs 20 lakh Congress Natwar Singh Rs 23 lakh Congress LP Shahi Rs 5 lakh Congress Ranjeet Singh Rs 5 lakh Congress ND Tiwari Rs 26.1 lakh Congress Harmohan Dhawan Rs 1.1 crore SJP Kailash Joshi Rs 10 lakh Bhartiya Janata Party BD Dahkne Rs 10 lakh Bhartiya Janata Party Madan Lal Khurana Rs 3 lakh Bhartiya Janata Party
VINEET NARAIN (born 1956) A prominent Indian journalist and anti-corruption activist. He was responsible for bringing the Hawala scandal to light. The case got a momentary boost up as a result of a PIL (Public Interest Litigation) filed in the Supreme Court. In 1996 for the first time in Indian history, several cabinet ministers, chief ministers and governors were charge-sheeted. Several landmark decisions were passed by the Supreme Court of India in the Vineet Narain Vs Union of India and Ors case. In July 1997, Mr. Narain compelled the Chief Justice of India comment on the Hawala case. He wrote a book on the case entitled Hawala ke Deshdrohi or Dangerous Silence.