ED Executes FEMA Search Mandate Across Jindal Group Premises in Delhi NCR & Hyderabad
(By: Syed Ali Taher Abedi)
The Enforcement Directorate (ED) Headquarters in New Delhi conducted extensive search operations on September 18 and 19, 2025, targeting 13 premises linked to the group companies of B C Jindal and Shyam Sunder Jindal, along with their directors and office bearers. The searches, carried out in Delhi NCR and Hyderabad, focus on alleged violations of the Foreign Exchange Management Act (FEMA), 1999. Central to the probe are suspected irregularities involving overseas investments, fund parking, and round-tripping of funds by entities including Jindal India Thermal Power Ltd. (JITPL), Jindal India Powertech Ltd., and Jindal Poly Films Ltd
Further scrutiny revealed that between FY 2013–14 and FY 2016–17, Jindal Poly Films Ltd. (JPFL) invested ₹703.79 crore in Jindal India Powertech Ltd. (JIPL), which was subsequently infused into Jindal India Thermal Power Ltd. (JITPL) for the establishment of a coal-based thermal power plant in Odisha.
However, in FY 2018–19, JPFL—a publicly listed entity—chose to write off the entire investment and sold its stake at a significant loss to its own promoters and affiliated group companies. Investigators suggest this manoeuvre may constitute a deliberate siphoning of public investor funds, raising serious concerns about corporate governance and financial propriety.
The ED’s inquiry continues, with further action expected pending forensic audit and examination of financial trails.
Subsequently, in May 2024, JIPL received Rs. 853.72 Crore from JTPL by redemption of preferential shares. JIPL instead of repaying this amount to the listed entity JPFL, has siphoned off Rs. 505.14 Crore out of this to the personal entity of Shyam Sundar Jindal in Dubai namely Topaz Enterprise DMCC in order to acquire 100% stake in Garnet Enterprise DMCC. It was gathered that Garnet Enterprise DMCC, Dubai is a wholly owned subsidiary of Topaz Enterprise DMCС. It was also gathered that Garnet Enterprise DMCC, Dubai has 48% stake in Jindal Polyfilm Netherlands B.V. which subsequently holds 100% stake in other step-down subsidiaries namely JPF Dutch B.V; JPF USA Holding LLC, USA and other foreign entities. All these overseas entities are beneficially owned by Shyam Sundar Jindal and his family. It is suspected that BC Jindal group is routing its own funds outside country in the garb of ODI and parking it outside country. During search action, certain documents related to overseas entities, its acquisition etc. have been recovered. As per documents, Shyam Sundar Jindal is beneficial owner and 100% shareholder of Topaz Enterprise DMCC and he is the key person controlling the financials of this entity and other overseas entities. It is gathered from the documents recovered during search operation that an amount of Rs. 505.14 Crore has been transferred outside India through sham transaction as ODI which was based on sham valuation of shares of foreign entity. Two different valuation report were obtained from two valuers who were related with each other, which shows that the valuation was enhanced to enable more remittance outside country. As per data, Shyam Sundar Jindal and his group entities are holding multiple overseas entities situated at Netherlands B.V., USA; Belgium, Italy; Kerkrade B.V., Luxembourg; Singapore, China; United Arab Emirates; Germany etc. and it is suspected that funds from India have been placed in these overseas entities in contravention of provisions of FEMA, 1999. Shyam Sundar Jindal was not available in India during search as he left to Hong Kong citing official work and has not yet returned to India. He is yet to join the investigation. Further investigation is under progress
