ED seizes unaccounted Indian currency amounting to Rs. 3.57 Crores in a FEMA Case

Directorate of Enforcement (ED) conducted searches under Foreign Exchange Management Act, 1999 (FEMA) at 08 different locations in Delhi and Ghaziabad including residences and offices of Directors of several tour & travel companies and their Chartered Accountants on 09th July 2020 and seized unaccounted Indian currency amounting to Rs. 3.57 Crores along with several incriminating documents and digital records.

Investigations under FEMA, 1999 were initiated against various entities including tour & travel companies on the basis of specific inputs that these entities were involved in unauthorized receipt of foreign remittances through payment gateways in the name of providing e-visa services to foreigners.

Investigations conducted in the matter so far have revealed that two such entities received foreign remittance of more than Rs. 200 Crores for processing Indian e-visa applications of foreigners without any authorization from the Government of India. These entities were also involved in high value suspicious transactions. Investigations also revealed that certain Chartered Accountants played a key role in managing the affairs of these entities and were behind the suspicious transactions carried out by them.

The seizure of unaccounted cash of Rs. 3.57 Crores during the search operations has raised further suspicion about the operations of such entities and their blatant violation of the statutory requirements.

Further investigation in this case is under progress.