ED raids 9 locations linked to Z Estates Private Limited in FEMA probe

Khordha (Odisha) [India], November 25 (ANI): The Enforcement Directorate (ED) in Bhubaneswar conducted searches on November 22 at nine locations across Odisha, Delhi, and Gurugram, linked to M/s Z Estates Private Limited (ZEPL), as part of an investigation into alleged violations of the Foreign Exchange Management Act (FEMA).
During the operations, the ED seized unaccounted cash amounting to Rs1.39 crore, along with incriminating documents.

"ED, Bhubaneswar has conducted search operations at nine locations in Odisha, Delhi, and Gurugram under the provisions of FEMA, 1999, on 22.11.2024, in connection with an investigation against M/s Z Estates Private Limited (ZEPL) and others. During the search operations, unaccounted cash amounting to Rs1.39 crore and various incriminating documents have been recovered and seized," the ED stated on X.
The search covered office and residential premises of the directors and key personnel of M/s ZEPL and its partnership firm, M/s Z Harshpriya.
The investigation was initiated to probe alleged FEMA violations by M/s ZEPL concerning the receipt of Foreign Direct Investment (FDI) through the round-tripping of funds via foreign entities established abroad, according to an official release.
The ED suspects irregularities in receiving foreign investments, particularly through the issuance of equity and premium shares to foreign entities. The investigation also points to potential hawala transactions and round-tripping of funds to M/s ZEPL from overseas entities.
"As a result of the searches, unaccounted cash amounting to Rs1.39 crore, along with incriminating documents related to foreign investments received by M/s ZEPL, have been recovered and seized," the release added. (ANI)