ED seeks details of funds from F1 organiser

The Enforcement Directorate (ED) has sought information from Jaypee Sports International (JPSI) Limited, the organiser of India’s first Formula One race scheduled to be held on October 30, about the funds generated by it abroad.

The Enforcement Directorate (ED) has sought information from Jaypee Sports International (JPSI) Limited, the organiser of India’s first Formula One race scheduled to be held on October 30, about the funds generated by it abroad.

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According to ED sources, a transfer of Rs200 crore was made from Indesign Enterprises, a Cyprus-based subsidiary of JPSI to Formula One Administration, the UK-based parent company of F1. The ED has sought details about the transaction under the Foreign Exchange Management Act (FEMA). ED sleuths have been asking for information from JPSI for a long time and the last letter in this regard was issued by ED Assistant Director Sharad Chaudhry on September 27.

Information has been sought about a bank guarantee of around R180 crore given by Indesign Enterprises to Formula One Administration. The ED has also asked for details of specific approvals received from Ministry of Sports in this regard.

“The payments had been made only after RBI clearance to LC (Letters of Credit) opened through Axis Bank. Indesign Enterprises, a subsidiary of Jaypee Group based out of Cyprus, issued the LC and this had been clarified to the RBI. We have carried out whatever instructions the RBI had issued to us,” responded Sameer Gaur, MD and CEO of JPSI Limited. ED has also sought details of settlement between RBI and JPSI.