ED seizes ₹22 lakh from Phagwara firm under FEMA

ED investigation revealed that the firm exported goods to countries including Syria, Iran, Turkey, Colombia, etc. However, the export proceeds were not realised as per the guidelines prescribed under FEMA, 1999, and RBI circulars.

Two days after conducting raids at four locations owned by a Phagwara-based firm, the Enforcement Directorate (ED) has confiscated ₹22 lakh under the provisions of the Foreign Exchange Management Act (FEMA), 1999.

During the search, Indian currency of the amount of ₹22 lakh, incriminating documents, and electronic evidence were recovered and seized.

The ED spokesperson said the searches were conducted at the premises linked to the Phagwara-based firm M/s Opal Engineering Corporation (OEC), which is involved in the export of engineering goods, for violation of provisions of FEMA, 1999, by receiving payments from unrelated third parties without following due procedure.

ED investigation revealed that the firm exported goods to countries including Syria, Iran, Turkey, Colombia, etc. However, the export proceeds were not realised as per the guidelines prescribed under FEMA, 1999, and RBI circulars.

The proceeds were adjusted against payments received from unrelated parties from different countries, and by taking payments into personal accounts.

“There were no tripartite agreements or any other documentary proof for adjustment entries from unrelated parties. The firm used a fake customs email address as an intimation claim the genuineness of the same. Further, evidence revealed that export transactions were also settled in cash in India and abroad,” the ED spokesperson stated in a press release issued on November 16.

During the search, Indian currency of the amount of ₹22 lakh, incriminating documents, and electronic evidence were recovered and seized.