ED slaps biggest ever FEMA notice of Rs 7,220 crore on Kolkata firm for illegal foreign exchange
KOLKATA: The Enforcement Directorate (ED) has slapped a show-cause notice of Rs 7,220 crore under Foreign Exchange Management Act (FEMA) on a Kolkata based jewellery house for allegedly indulging in illegal foreign exchange. The notice is biggest ever FEMA showcause, said an ED official in Kolkata.
"Armed with an order issued by the adjudicating authority of the FEMA, ED charged M/S Shree Ganesh Jewellery House (I) Ltd, its promoters and others for resorting to unauthorised foreign exchange dealings, holding of foreign exchange outside India, wilfully siphoning off Rs 7,220 crore as export proceeds," said the official.
Investigation conducted under FEMA so far has revealed that promoters of the jewellery house, identified as Nilesh Parekh, Umesh Parekh and Kamalesh Parekh are serial offenders and various cases are pending against them in several departments like ED, CBI, Directorate of Revenue Intelligence (DRI) and internationally.
"A letter of request is pending against the firm 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," said the official of the central agency.
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 or public funds availed by it were ostensibly routed in the garb of export to above foreign entities and others and the proceeds against the same were parked outside India," said another ED official.