The Enforcement Directorate (ED) raided the office premises of OPG Group in Chennai. During this period, ED recovered Rs 838 crore in cash during raids. The ED launched a search operation against the OPG Group in Chennai for violation of the Foreign Exchange Management Act (FEMA) 1999 and Foreign Direct Investment (FDI) regulations. Out of this, ED has seized around Rs 838 crore from the office premises of M/s OPG Group and the residences of its directors.
Actions taken under FEMA
Let us tell you that OPG Group is owned by Arvind Gupta, who is in the power generation business. The company has received Rs 1,148 crore in foreign direct investment (FDI) from Seychelles companies. The investigation also found misappropriation of funds and revealed several violations of FEMA regulations, including erroneous declarations to the Reserve Bank of India. An investigation by ED under FEMA regulations, 1999 revealed that a large portion of the said FDI funds, which were intended to be invested in the power sector subject to certain conditions prescribed by the FDI policy, were illegally invested in the stock market, including through mutual funds . It also includes investments in land and real estate, which are strictly prohibited by foreign direct investment guidelines. Additionally, large amounts of money were converted into cash with the help of supplier companies, which helped issue fake invoices, thereby helping the company withdraw cash.
Money laundering and other illegal activities are under investigation.
During the search, the DOE also discovered handwritten notes related to the cash transactions. Further investigation revealed that OPG Group management had established multiple companies in Dubai, Isle of Man, Seychelles, Singapore and Hong Kong. A large portion of the transferred funds was allegedly deposited abroad. These foreign entities are being investigated to follow the money trail and determine whether the funds were laundered through these companies or used for other illegal activities. Investigations into these foreign entities are ongoing to determine this.
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