Edelweiss Group chairman Rashesh Shah on Wednesday appeared before the Enforcement Directorate (ED) which had summoned him in their ongoing probe in a multi-crore forex scam.
The agency is scanning finances of a firm named Capstone Forex for alleged violations of foreign exchange norms. The firm is under scanner for Foreign Exchange Management Act (FEMA) violations.
“Capstone is being probed for sending forex abroad without following Know Your Customer (KYC) norms,” said a source privy to the development. “The forex worth ₹740 crore is involved which is being probed.”
Edelweiss has denied any links with Capstone. In an earlier statement issued when Shah was recently summoned, Edelweiss stated, “We have received a communication from the ED to appear and provide information about Edelweiss group companies’ dealings with a company called Capstone forex Pvt LTD. We would like to state that none of our companies have any transactions with this company - Capstone Forex Pvt ltd.”
It added, “We further deny wild and baseless allegations contained in the news items which are apparently attributed to unidentified sources. We are in fact shocked at the spread of unauthenticated allegations and the inference being drawn from it.”