CHENNAI: The Enforcement Directorate (ED) conducted searches at the offices of India Cements on Wednesday and Thursday to check for any violations under the Foreign Exchange Management Act (FEMA).
The searches were carried out at the corporate office of India Cements in Chennai. According to sources, the company’s premises in Delhi were also searched.
Searches by ED were confirmed by India Cements. “Certain Officials from the Enforcement Directorate visited our corporate office in Chennai on January 31 and February 1, and conducted a search to ascertain if there were any irregularities concerning FEMA,” the company said in a regulatory statement.
The statement was given as disclosure under regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, which was accessed by The New Indian Express.
“We have provided/undertaken to provide all the clarification/documents sought by them. We do not anticipate any material impact on the company with regard to the investigation,” the company said.
The probe pertains to the affairs of Indian Cements’ associate company India Cements Capital Ltd (ICCL) and transfer of funds abroad worth about Rs 550 crore. Sources said some agents and directors are under the scanner of the central investigative agency. ICCL deals in foreign exchange, money transfer, travel insurance and remittances. Founded in 1946, India Cements has ventured into related fields like shipping, captive power and coal mining.