ED slaps Kolkata firm with biggest ever FEMA notice of Rs 7,220 cr
Promoters of Kolkata-based Shree Ganesh Jewellery House are said to have wilfully siphoned off Rs 7,220 cr.Updated: Jul 06, 2020 23:00 IST
In its biggest ever action under Foreign Exchange Management Enforcement Act (FEMA), the Enforcement Directorate (ED) has sent a notice to Kolkata-based Shree Ganesh Jewellery House and its promoters - Nilesh, Umesh and Kamlesh Parekh for allegedly resorting to unauthorized foreign exchange dealings, holding of foreign exchange outside India and willfully siphoning off Rs 7,220 crore as export proceeds.
According to a statement issued by ED on Monday, “investigation has revealed that Parekhs are serial offenders and various cases are pending against him (Nilesh) in several departments like, Central Bureau of Investigation, Directorate of Revenue Intelligence, Special Economic Zone, Enforcement Directorate and even internationally.”
A Letter of Request is pending in the case in Switzerland.
“Contravention of Foreign Exchange Management Act has been noticed against their other company, namely Easy Fit Jewellery Pvt Ltd amounting to more than 250 Crores earlier as well. Shree Ganesh Jewellery House Ltd is one among top 100 willful defaulters as per RBI,” said ED.
“The investigation has also revealed that Shree Ganesh Jewellery House has huge outstanding for the foreign bills drawn on M/s Al Marhaba Trading FZC, M/s Sparkle Jewellery LLC, UAE and M/s Astha Jewellery LLC, UAE which are companies promoted by themselves. The bank funds availed by it were ostensibly routed in the garb of export to above foreign entities and others and the proceeds against the same were parked outside India,” the ED said.
Nilesh Parekh was arrested by CBI in May 2017.