ED conducts searches at multiple locations over FEMA violation
Mar 26, 2024
New Delhi [India], March 26 : The Directorate of Enforcement (ED) has conducted searches at various locations, including Delhi, Hyderabad, Mumbai, Kurukshetra and Kolkata, over an alleged violation of the Foreign Exchange Management Act (FEMA), 1999, the agency said on Tuesday.
The searches were held at the premises of Capricornian Shipping & Logistics Pvt Ltd and its directors Vijay Kumar Shukla and Sanjay Goswami and associated entities Laxmiton Maritime, Hindustan International, Rajnandini Metals Limited, Stawart Alloys India Pvt Ltd; Bhagyanagar Limited, Vinayak Steels Limited, Vashishta Constructions Pvt Ltd; and their directors/partners Sandeep Garg, Vinod Kedia and Others at various locations under the provisions of FEMA, 1999.
As per the agency inputs, ED initiated an investigation based on credible information, which revealed that the said entities are involved in sending foreign exchange outside India on a large scale and made suspicious outward remittances amounting to Rs 1800 crore to Galaxy Shipping & Logistics Pte Ltd., Singapore and Horizon Shipping & Logistics Pte Ltd Singapore. Both these overseas entities are managed by one Anthony De Silva.
The release further stated that it has been found during the search that Capricornian Shipping and Logistics Pvt Ltd; Laxmiton Maritime along with its associates, made outward remittances to the tune of Rs 1800 crore to Singapore-based entities in the garb of bogus freight services, imports, layering them through a web of complex transactions with the help of shell entities like Neha Metals, Amit Steel Traders, Triple M Metal and Alloys, HMS Metals, etc.
During the search, unexplained cash amounting to Rs 2.54 crore, part of which was hidden in a washing machine, was found and seized. Further, various incriminating documents and digital devices have been found and seized during the search proceedings. 47 bank accounts of the entities involved have been frozen as well.
Further investigation is underway, the agency said.
