ED Uncovers Massive Rs. 2000 Crore Fund Diversion Scheme in Eros International Media Ltd Investigation
(Judicial Quest News Network)
Mumbai,7, February,2025. The Directorate of Enforcement (ED), Mumbai Zonal Office, has carried out extensive search operations on February 5, 2025, under the Foreign Exchange Management Act (FEMA), 1999, at five locations across Mumbai. The operation is part of an ongoing probe into the alleged fund diversion activities involving Eros International Media Ltd. and other entities within the EROS group.
During the search, several incriminating documents were seized, detailing connections to overseas entities, immovable properties, foreign bank accounts, and digital devices. These findings are central to the investigation into a financial scam worth approximately Rs. 2000 Crore.
The investigation was launched following a Securities and Exchange Board of India (SEBI) probe into the EROS group and its promoters, who are accused of financial misrepresentation and siphoning off funds. Eros International Media Ltd., a leading Indian film production and distribution company, is the primary entity under scrutiny. The company has been involved in co-producing, acquiring, and distributing films across global platforms, including theaters, television, and digital media.
ED’s ongoing inquiry has uncovered significant evidence that points to a scheme wherein Eros International Media Ltd. paid approximately Rs. 2000 Crore as content advances to various entities between FY 2012-13 and FY 2020-21. These payments were later written off under the guise of non-recovery due to the COVID-19 pandemic, a strategy used to ‘clean up’ the company’s balance sheet.
Further investigations reveal that these advances were routed back to the company through fictitious movie rights purchases, effectively inflating the company’s financial statements. The authorities are continuing to investigate the full scope of the operation.
