The Directorate of Enforcement (ED) conducted searches on Thursday in connection with an investigation into alleged violations of the Foreign Exchange Management Act (FEMA) by M/s Kalanee Impex Private Limited and its active director, Dharmesh Narendra Sangani, a Mumbai-based businessman and film producer.
Key Findings During Searches
During the search proceedings, it was revealed that money which ought to have been received in India reportedly did not return to the country despite the lapse of a substantial amount of time. The probe also found that export proceeds from certain overseas buyers had allegedly not been realised and no extension of time had been obtained from the authorised dealer bank. Investigators also found no documented efforts to recover the outstanding dues.
The ED further alleged that export proceeds had been received from third-party entities other than the consignee or buyer named in the export invoices and shipping bills. Evidence relating to undisclosed foreign assets and bank accounts was also found during the proceedings, according to ED sources.
Undisclosed Foreign Assets Identified
For example, substantial shareholding of Sangani was found in an undisclosed Canadian company. The associated foreign bank account and related transactions were also not reportedly disclosed before appropriate authorities, the probe revealed. In another instance, an undisclosed UAE business entity has been identified, ED sources said. As of now, undisclosed bank accounts in Canada, the US and the UAE have been identified by the ED.
International Cooperation
Customs authorities in the US and the UK are also investigating certain transactions of Sangani, sources aware of details informed. The ED is investigating FEMA violations in connection with these transactions. The investigation is ongoing, and further details are expected to emerge as the probe progresses.
