7 days ago
ED raids exports firm for FEMA violations
The Directorate of Enforcement (ED) raided four premises linked to a private firm, Sri Kumaraswamy Mineral Exports Pvt. Ltd., in Bengaluru and Mangaluru on May 27, for alleged violations of Foreign Exchange Management Act, 1999, in the matter of various 'undisclosed transactions in overseas jurisdictions.'
The ED said in a statement on Friday that the premises linked to the directors of the firm, Santesh Gureddi and Jyothi Gureddi, Bhavani Prasad Tapal and Renuka Devi and Ravindranath, and Uma Alva, were also raided.
'The ED had initiated investigation based on intelligence input received from the Income Tax Department wherein it was prima facie revealed that part of the export proceeds of Sri Kumaraswamy Mineral Exports Pvt. Ltd. were diverted by its buyers in the bank accounts of overseas companies wherein directors of the firm were shareholders. Further, it is understood that Shantesh Gureddi had acquired immovable property in London, valued at £6.4 million, partly out of the said proceeds,' ED said in the statement.
The agency further said that the directors had incorporated multiple entities in overseas jurisdiction for receipt of profit derived by the company and diversion of part of export proceeds through these overseas entities.
'It is also revealed that multiple bank accounts were opened abroad by the directors for parking of funds outside India and for further diversion of funds to multiple bank accounts maintained overseas for purchase of properties outside India in their name and in the name of their family members,' ED said.
