Odisha: ED unearths Rs 1.39 cr unaccounted cash regarding foreign investment

Bhubaneswar, Nov 25 The Enforcement Directorate (ED), Bhubaneswar zonal office has unearthed unaccounted cash of Rs 1.39 crore and several incriminating documents regarding foreign investments during the searches at various locations linked to M/s Z Estates Private Limited (ZEPL) and other entities, said ED in a press statement on Monday.

The ED sleuths carried out search operations at nine places in Odisha, Delhi and Gurugram under the provisions of the Foreign Exchange Management Act (FEMA), 1999 on November 22. The locations covered during the search included the office and residential premises of Directors and key persons of M/s ZEPL and its partnership concern M/s Z Harshpriya.

“ED initiated an investigation against M/s ZEPL for a violation under the FEMA,1999 in respect of receiving Foreign Direct Investment from abroad by way of round-tripping of funds through foreign entities formed and located abroad,” informed the press statement.

“The search operation was conducted on the basis of suspected violations in receipt of foreign investments by way of issuing equity shares and premium shares to foreign entities in lieu of such investments, ED is suspecting probable hawala transactions and round tripping of funds to M/s ZEPL from abroad through various foreign entities,” the ED further added.

The ED officials have seized unaccounted cash amounting to Rs 1.39 Crore and various incriminating documents in respect of foreign investment received by M/s ZEPL during the searches.

Earlier, Tapan Kumar Mohanty, the Managing Director of Z Estates, had told media persons that the company had received the foreign investment in 2007 and the company has all the compliances including FEMA (Foreign Exchange Management Act) permission, RBI declaration and regulations. He claimed the company followed all the regulations while receiving the foreign investment.

It is worth mentioning that the Economic Offences Wing of Odisha Police conducted searches at various locations attached to Z Estates Private Limited and its directors in September last year in connection with allegations of irregularities in some construction works in Z One Apartments located in the Raghunathpur area of Bhubaneswar.