Barely a month before Emaar MGF hits the capital markets for the second time, the Enforcement Directorate on Thursday raided 13 premises of the real-estate firm in the National Capital Region for alleged violation of the Foreign Exchange Management Act (FEMA). FEMA monitors foreign-exchange transactions.
“We have seized incriminating documents relating to overseas monetary transactions by Emaar MGF through telegraphic transaction (wire transfer), which point to various irregularities,” said an Enforcement Directorate official who did not want to be named.
He said the directorate was also examining the alleged violation of foreign direct investment norms by the company.
At least Rs 15 crore cash was recovered during the searches, the official said. Quashing rumours, he clarified that the raids were not connected in any way with the Madhu Koda money-laundering case.
“There was a routine search operation by the ED at some of our premises in Delhi,” said an Emaar MGF spokesperson.
The company, a joint venture between Dubai-based Emaar Properties and Delhi-based MGF, is developing the Commonwealth Games Village project in Delhi.
Emaar Properties has invested $1 billion (Rs 4,600 crore) in its India operations.