ED Uncovers Rs. 1.39 Crore in Cash, Seizes Key Documents in Major FEMA Investigation
(Judicial Quest News Network)
The Directorate of Enforcement (ED), Bhubaneswar Zonal Office, conducted extensive search operations across 9 locations in Odisha, Delhi, and Gurugram on November 22, 2024, as part of an ongoing investigation into M/s Z Estates Private Limited (ZEPL) and its associated entities. The action was taken under the provisions of the Foreign Exchange Management Act (FEMA), 1999, in connection with alleged violations of foreign investment regulations.
The search targeted the office and residential premises of the directors and key individuals linked to M/s ZEPL, as well as its partnership concern, M/s Z Harshpriya. ED’s investigation is centered on suspected illegal foreign direct investments (FDI) received by ZEPL, facilitated through complex transactions involving the round-tripping of funds via foreign entities. These foreign entities, allegedly set up overseas, were used to route funds back into India, creating a facade of legitimate investment.
According to ED officials, the probe has revealed suspicious transactions involving the issuance of equity and premium shares to foreign entities in exchange for foreign investments. The agency suspects these transactions may be part of a broader hawala network and a money-laundering operation designed to move illicit funds into the Indian market under the guise of FDI.
As a result of the coordinated search operations, ED recovered unaccounted cash amounting to Rs. 1.39 Crore, alongside various incriminating documents that shed light on the foreign investments made by ZEPL. These documents are expected to play a crucial role in the ongoing investigation as ED seeks to uncover the full extent of the violations and bring the perpetrators to justice.
The seizure of such significant amounts of unaccounted money and the discovery of critical documents highlight the scale of the alleged financial irregularities and underline the ED’s commitment to cracking down on unlawful foreign exchange transactions.
