ED issues show-cause notice to jewellery firm, its promoters under FEMA
Jul 06, 2020
New Delhi [India], July 7 : A show-cause notice was issued to M/s Shree Ganesh Jewellery House (I) Ltd & its Promoters and others for allegedly resorting to unauthorized foreign exchange dealings, holding of foreign exchange outside India, willfully siphoning off Rs 7,220 crore as export proceeds.
"The Adjudicating Authority under Foreign Exchange Management EnforcementAct, 1999 (FEMA) in ED Kolkata has issued a Show Cause Notice to M/s Shree Ganesh Jewellery House (I) Ltd & its Promoters & others for resorting to unauthorized foreign exchange dealings, holding of foreign exchange outside India, willfully siphoning off a Rs. 7220 Crore as export proceeds," according to a release by the Enforcement Directorate (ED).
According to ED, investigation conducted under FEMA so far has revealed that Promoters of Shree Ganesh Jewellery House (I) Ltd, namely S/Shri Nilesh Parekh, Umesh Parekh and Kamlesh Parekh are serial offenders and various cases are pending against him in several departments like, Central Bureau of Investigation, Directorate of Revenue Intelligence, Special Economic Zone,, Enforcement Directorate and even internationally.
"A Letter of Request is pending against him from Switzerland. Contravention of Foreign Exchange Management Act has been noticed against their other company, namely Easy Fit Jewellery Pvt Ltd amounting to more than 250 Crores earlier also. Shree Ganesh Jewellery House (I) Ltd is one among top 100 willful defaulters as per RBI," read the release.
"The investigation has also revealed that M/s Shree Ganesh Jewellery House (I) Ltd has huge outstanding for the foreign bills drawn on M/s Al Marhaba Trading FZC, M/s Sparkle Jewellery LLC, UAE and M/s Astha Jewellery LLC, UAE which are companies promoted by themselves. From which, it implies that Bank/Public funds availed by it were ostensibly routed in the garb of export to above foreign entities & others and the proceeds against the same were parked outside India," it said.
