Kitex Group MD Sabu Jacob Dismisses ED FEMA Case Reports as 'Fake', Plans Legal Action
In a strong rebuttal from Kochi, Kitex Group managing director and Twenty20 president Sabu M Jacob has categorically dismissed recent media reports claiming that the directorate of enforcement (ED) registered a Foreign Exchange Management Act (FEMA) case against the company. Jacob labeled these reports as 'baseless' and 'fake', asserting that they are part of a malicious campaign to tarnish his and the company's reputation.
Clarification on Notices and Allegations
Jacob clarified that the notices received by Kitex Group in May 2025 were not specific to his company but were part of a broader Union government initiative. He explained that these were routine communications issued to over 1,000 exporters across India, aimed at enhancing transparency in foreign exchange transactions. According to Jacob, such notices are typically triggered by minor discrepancies in foreign exchange receipts, and he emphasized that there is no provision for arrest or imprisonment in such cases, contrary to the sensationalized media claims.
Denial of Political Motives and Threats of Legal Action
In response to allegations that his party, Twenty20, joined the National Democratic Alliance (NDA) to evade legal action, Jacob firmly denied any such motives. He stated that the decision was based on political alignment and not influenced by external pressures. Alleging attempts to blackmail him using the ED's name, Jacob warned that action would be taken against those involved in spreading false information.
To address the issue, Jacob announced concrete plans for legal recourse. He revealed intentions to issue a legal notice to the news channel that aired the report, seeking accountability for the alleged misinformation. Additionally, he plans to file a formal complaint with the Information and Broadcasting (I&B) Ministry, urging them to investigate the matter and ensure adherence to journalistic ethics.
Broader Implications and Industry Context
This incident highlights the challenges faced by businesses in India regarding regulatory compliance and media scrutiny. Jacob's response underscores the importance of verifying facts before publishing sensitive reports, especially those involving legal and financial matters. The case also sheds light on the routine nature of government communications with exporters, which are often misinterpreted or exaggerated in public discourse.
As the situation unfolds, stakeholders in Kochi and beyond are watching closely, with Jacob's firm stance signaling a pushback against what he perceives as unwarranted attacks on corporate integrity.
