ED may file case against Raj Kundra for financial irregularities
The Enforcement Directorate may file a case against Raj Kundra under the Prevention of Money Laundering Act and Foreign Exchange Management Act as the case revolving around an alleged porn racket has aspects of financial irregularities as well, news agency ANI has reported. The ED may take action anyandter Mumbai Police officially inform the central agency to probe the financial aspect of the case-- as that is the procedure.
The crime branch of Mumbai Police arrested Bollywood actor Shilpa Shetty's husband, businessman Raj Kundra on July 20 in connection with an alleged porn racket operating in Mumbai. In association with a London-based firm, Raj Kundra's company, owned by Kundra's brother-in-law, used to run an online streaming application that allegedly made porn videos. Kundra was sent to police custody till July 23, which now has been extended to July 27.
As Mumbai Police are investigating the case, several aspects are coming up. Police have said that the charges against Kundra and his associates are for making pornographic films and cheating people with the promises of Bollywood roles. Police have received complaints from women actors who have said that they were promised Bollywood roles and were forced to do those porn movies.
The financial aspects are also being probed, regarding which the Enforcement Directorate can launch a separate investigation. Most of Kundra's transactions were with foreign firms and hence the ED may invoke charges under FEMA against Kundra.
What are FEMA and PMLA?
The Foreign Exchange Management Act relates to external trade, payment etc. Under this Act, foreign exchange related offences are civil offences.
As the name suggests, the Prevention of Money Laundering Act is to prevent money laundering. Under this act, the authority can confiscate property obtained for the laundered money.
What are the financial irregularity charges against Raj Kundra?
Mumbai Police have revealed that Raj Kundra was planning to sell 119 adult films to a foreign indivisual for a sum of $1.2 million. Police are also suspecting that the money earned through Hotshots app might be channelised into online betting as a South Africa-based sports betting firm transferred money into Kundra's bank account.