Mumbai: ED recovers Rs 4.6 crore in foreign currency, Rs 4 lakh cash in raid
The Mumbai Zonal Office of the Directorate of Enforcement (ED) on Thursday recovered foreign currencies equivalent to Rs 4.6 crore, along with Rs 4 lakh in Indian currency, during a search operation across five locations in Mumbai.
ANI
Nov 08, 2024 23:56 IST
Mumbai (Maharashtra) [India], November 8 (ANI): The Mumbai Zonal Office of the Directorate of Enforcement (ED) on Thursday recovered foreign currencies equivalent to Rs 4.6 crore, along with Rs 4 lakh in Indian currency, during a search operation across five locations in Mumbai.
The ED also seized several electronic devices and incriminated evidence related to a case under the provisions of the Foreign Exchange Management Act (FEMA), 1999.
According to the ED, the searches were conducted in connection with the suspected illegal sale and distribution of foreign exchange by Full Fledged Money Changers (FFMCs) at the premises of M/s Kuntilaa Forex Pvt Ltd (KFPL), M/s Shagun Enterprises, M/s Capital India Finance Ltd., and M/s MDB Tours and Forex Pvt Ltd.
The operation was triggered following an investigation by the ED into unusual financial activities observed during the financial year 2022-23 in the forex business of M/s KFPL, whose license was revoked by the Reserve Bank of India (RBI) in October 2023.
The ED's investigation revealed that the bank accounts of M/s KFPL, M/s MDB Tours & Forex Pvt Ltd, and others were used to deposit cash or receive funds from various channels. These funds were then used by FFMCs to purchase foreign currency in bulk from M/s Capital India Finance Ltd., a Category-II AD licensee, after which the foreign currency was sold through unauthorised and illegal channels.
Further analysis showed that M/s KFPL made cash deposits exceeding Rs. 370 crore in its bank accounts within a short span of 14 months during the financial year 2022-23.
The investigation also revealed that M/s Capital India Finance Ltd. was receiving hundreds of crores of rupees in a short period from various FFMCs that lacked the history or expertise to handle such large volumes of transactions. Many of these FFMCs had their licenses revoked by the RBI due to non-compliance with guidelines and suspicious transactions.
Further investigation is under process. (ANI)
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