The Enforcement Directorate (ED) has raided the premises of OPG Group in Chennai. During this period ED has seized Rs 8.38 crore in cash in raids. ED has conducted a search operation against OPG Group, Chennai for violation of Foreign Exchange Management Act (FEMA), 1999 and Foreign Direct Investment (FDI) rules. In which the ED recovered from the office of M/s OPG Group and the residential premises of its directors approximately Rs. 8.38 crore was seized.
Proceedings are under FEMA
Let us tell you that the owner of OPG Group is Arvind Gupta, who does power generation business. The company received Rs. 1148 crore foreign direct investment (FDI) was received. The investigation also revealed that funds were misappropriated and revealed several violations of FEMA provisions, including false declaration to the RBI. ED investigations under the provisions of FEMA, 1999 revealed that a substantial portion of the said FDI funds to be invested in the power sector, including mutual funds, were illegally invested in the stock market, subject to certain conditions under the FDI policy. Also includes investment in land and real estate, which is strictly prohibited under FDI guidelines. Further, large sums were converted into cash with the help of vendor companies, who helped issue fake invoices, which helped the company withdraw the cash.
Money laundering and other illegal activities are being investigated.
During the search, the ED also found handwritten notes related to cash transactions. Further investigation revealed that OPG Group management had set up several companies in Dubai, Isle of Man, Seychelles, Singapore and Hong Kong. Through which a significant portion of the money diverted was allegedly deposited abroad. These foreign entities are being investigated to trace the money trail and also to find out whether money was laundered by these companies or used for other illegal activities. These foreign entities are being investigated to determine that.
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