The Enforcement Directorate (ED) has launched a Foreign Exchange Management Act (FEMA) investigation against Mumbai-based film producer Dharmesh Sangani and his company Kalanee Impex Ltd. The central agency conducted searches at multiple locations on Thursday, July 10, 2026, as part of the probe into alleged foreign exchange violations.
Searches Conducted Under FEMA
The ED officials carried out simultaneous searches at the premises of Kalanee Impex Ltd. and its director Dharmesh Sangani in Mumbai. The operation was part of a broader inquiry under FEMA, which regulates foreign exchange transactions in India. The agency is examining whether the company and Sangani violated provisions related to external commercial borrowings, foreign investments, or other cross-border financial dealings.
According to ED sources, the searches were conducted after preliminary evidence suggested irregularities in foreign exchange transactions involving the film producer's firm. The agency has seized documents, digital records, and other materials during the operation for further analysis.
Details of the Investigation
Dharmesh Sangani is a known figure in the Mumbai film industry, having produced several Bollywood and regional films through his production ventures. Kalanee Impex Ltd., which is registered as an import-export company, has been under ED scrutiny for suspected FEMA breaches. The investigation focuses on whether funds were transferred abroad without proper authorization or if foreign investments were routed through non-compliant channels.
FEMA was enacted in 1999 to consolidate and amend laws relating to foreign exchange, with the objective of facilitating external trade and payments while promoting the orderly development of the foreign exchange market in India. Violations can lead to penalties up to three times the amount involved, along with confiscation of assets.
Impact on the Film Industry
The ED's action has sent ripples through the Mumbai film industry, where foreign funding and international co-productions are common. Industry experts note that while most producers comply with regulations, this case highlights the need for strict adherence to FEMA rules. The investigation could potentially lead to greater scrutiny of cross-border financial flows in the entertainment sector.
As of now, no arrests have been made, and the ED has not filed any charges. Sangani and Kalanee Impex Ltd. have not issued a public statement regarding the searches. The investigation is ongoing, and further actions will depend on the evidence gathered.
