Rs 20 Crore FEMA Violation: ED Slaps Show Cause Notice on Real Estate Promoter Errol Fernandes & Family
(Judicial Quest News Network)
Bengaluru 06, Aug,2025-The Directorate of Enforcement (ED), Bengaluru Zonal Office, has filed a formal complaint under Section 16(3) of the Foreign Exchange Management Act, 1999 (FEMA) against Errol Fernandes—promoter of Ferns Estates and Developers—and his family members for alleged foreign exchange violations amounting to ₹20.56 crore.
Show Cause Notice Issued the Adjudicating Authority has issued a Show Cause Notice to Fernandes and his family following an extensive investigation that spanned transactions from 2017 to 2024. Key Findings from ED Investigation
Suspicious Overseas Remittances: Fernandes and his family reportedly transferred ₹20.56 crore abroad under the Liberalised Remittance Scheme (LRS).
Investment Misuse: ₹3.67 crore was sent abroad for investment purposes. Upon redemption, the funds were retained in foreign accounts and repatriated to India only after significant delays.
False Claims for Family Maintenance: ₹16.88 crore was remitted under the guise of family maintenance. However, investigations revealed that no relatives were residing abroad during the period. The funds were instead used for overseas investments, again repatriated with long delays.
What’s Next? The ED’s complaint could lead to further legal action depending on the response to the Show Cause Notice and subsequent adjudication.
