The Enforcement Directorate (ED) Jalandhar Zonal Office announced on Sunday that it recently conducted search operations at four locations in Phagwara, Punjab, under the provisions of the Foreign Exchange Management Act (FEMA).
File Photo: IANS
The Enforcement Directorate (ED) Jalandhar Zonal Office announced on Sunday that it recently conducted search operations at four locations in Phagwara, Punjab, under the provisions of the Foreign Exchange Management Act (FEMA).
During the searches, Indian currency amounting to Rs 22 lakh, along with incriminating documents and electronic evidence, was recovered and seized.
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A senior ED official stated that the raids targeted premises linked to the Phagwara-based firm Opal Engineering Corporation (OEC), which exports engineering goods. The firm is under investigation for violating FEMA provisions by receiving payments from unrelated third parties without following due procedure.
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“The ED investigation revealed that Opal Engineering Corporation exported goods to countries such as Syria, Iran, Turkey, and Colombia. However, the export proceeds were not realised as per the guidelines prescribed under FEMA and RBI Master Circulars,” the official said.
The proceeds were allegedly adjusted against payments received from unrelated parties in different countries, with funds also being directed into personal accounts. The investigation found no tripartite agreements or other documentary proof to justify these adjustment entries from unrelated parties. The firm reportedly used a fake Customs email address to legitimise these transactions. Furthermore, evidence revealed that some export transactions were settled in cash, both in India and abroad.
Further investigation into the matter is ongoing.
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