Money seized by ED
The Enforcement Directorate (ED) has raided the premises of OPG Group in Chennai. During this period, ED has recovered Rs 8.38 crore cash in the raid. ED conducts search operation against OPG Group, Chennai for violation of Foreign Exchange Management Act (FEMA), 1999 and Foreign Direct Investment (FDI) Regulations. In which ED seized approximately Rs 8.38 crore from the office premises of M/s OPG Group and the residential premises of its directors.
Action taken under FEMA
Let us tell you that the owner of OPG Group is Arvind Gupta, who does the business of power generation. The company had received foreign direct investment (FDI) of Rs 1148 crore by Seychelles based companies. The investigation also revealed that funds were misappropriated, and revealed several violations of FEMA provisions, including wrong declaration to the RBI. ED’s investigation under the provisions of FEMA, 1999 revealed that a significant portion of the said FDI funds, intended for investment in the power sector, subject to certain conditions under the FDI policy, were illegally invested in the stock market, including through mutual funds. Also included investment in land and real estate, which is strictly prohibited under FDI guidelines. Further, a huge amount was converted into cash with the help of vendor companies, who helped in issuing fake invoices, which helped the company to withdraw the cash.
Money laundering and other illegal activities are being investigated.
During the search, ED also found handwritten notes related to cash transactions. Further investigation revealed that the management of OPG Group had established several companies in Dubai, Isle of Man, Seychelles, Singapore and Hong Kong. Through which a significant portion of the diverted money was allegedly deposited abroad. These foreign entities are being investigated to trace the money trail and also to find out whether money was laundered through these companies or whether they were used for other illegal activities. These foreign entities are being investigated to determine this.
Also read:
List of world’s most polluted cities released, 2 cities of India and Pakistan on top number
Supreme Court banned government’s arbitrariness on bulldozer action, said – officers will be punished for taking illegal action
Latest India News
