The Directorate of Enforcement (ED) has conducted search operations at nine locations across Odisha, Delhi and Gurugram under the provisions of Foreign Exchange Management Act, in connection with an investigation being carried out against a private company and other persons for allegedly receiving foreign funding by round tripping of money through foreign entities located overseas.
During the searches, unaccounted cash amounting to Rs. 1.39 crore, along with various incriminating documents in respect of foreign investment received by the alleged private company have been recovered and seized, the agency said. The locations searched by the anti- money laundering agency included the office and residential premises of the directors and key-persons of the alleged firm and its partner company in Haryana, official sources said on Monday. The federal agency initiated the probe over alleged violation under the FEMA,1999 in respect of wrongfully receiving Foreign Direct Investment (FDI).
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ED conducted its searches based on suspected violations in receipt of foreign investments by way of issuing equity shares and premium shares to foreign entities in lieu of such investments, and the central agency is suspecting probable hawala transactions.
Meanwhile, in another case, the agency’s Mumbai Zonal Office has provisionally attached movable assets in the form of Demat Account holdings and immovable assets in the form of lands, flats and commercial warehouses located at Rajasthan, Gujarat, Daman, Thane and Mumbai, worth Rs. 219.66 Crore, under the PMLA. These attachments were part of the ongoing probe in the case of “Fairplay,” which was allegedly involved in illegal broadcasting of Cricket/ IPL matches and various online betting activities.
The federal probe agency initiated its investigation on the basis of FIR registered by Nodal Cyber Police, Mumbai against Fairplay Sport LLC and others on the complaint of Viacom18 Media under various sections of IPC, 1860, Information Technology Act, 2000 and Copyright Act, 1957 for causing alleged loss of revenue of more than Rs.100 Crore.
