The Enforcement Directorate (ED) has issued summons against two former directors of Jaipur-based Anand Heritage Hotels Private Limited (AHHPL) -- a firm of former cricket czar Lalit Modi -- with regard to the foreign exchange violation case.
SK Modi and SN Rohar have been asked to present themselves before the ED on August 5, said a government source familiar with the proceedings. The case is related to alleged violations of the Foreign Exchange Management Act (FEMA) in the routing of Rs 21 crore from a Mauritius-based firm, Wilton Investment Limited, to AHHPL in 2007.
The ED suspects that the money received was not deployed for its intended usage, for instance, upgrading the hotel’s infrastructure, the source added.
The firm has allegedly not provided details that could reflect that these assets were created in proportion to the funds received.
The ED is verifying allegations that the funds were acquired on fictitious grounds. The firm had reportedly issued fabricated share applications and on the basis of these allegations, a sum of Rs 10 crore was shown as deposited and then forfeited later.
Another former director of the firm had been examined in March by the ED.
Lalit Modi and his lawyers, who have been part of the case’s adjudication proceedings, have denied any wrongdoing on their part.
The ED has sought Income Tax department’s records -- including annual returns -- on AHHPL and another private firm, which had entered into a few transactions with the former.
The agency is also scrutinising records received from the Registrar of Companies.