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Informist, Wednesday, Sept. 24, 2025

 

--Enforcement Directorate searched BC Jindal cos premises over FEMA violation

--Enforcement Directorate searched premises of BC Jindal, Shyam S Jindal cos

 

HYDERABAD – The Directorate of Enforcement conducted search operations at 13 premises connected with group companies of B.C. Jindal and Shyam Sundar Jindal, their directors, and other office bearers, for alleged violation of the Foreign Exchange Management Act, 1999. The searches were conducted at premises located in Delhi National Capital Region and Hyderabad on Sept. 18-19, the agency said in a press release.

 

Enforcement agency officials searched offices of Jindal India Thermal Power Ltd., Jindal India Powertech Ltd., and Jindal Poly Films Ltd. in relation to their overseas investments and for parking funds in their overseas entities and round tripping of funds, the release said.

 

The Enforcement Directorate said the investigation was taken up on specific inputs that the B.C. Jindal Group entities, beneficially owned by Shyam Sundar Jindal, his wife Shubhdra Jindal, and son Bhavesh Jindal, had remitted INR 5.05 billion to Topaz Enterprise DMCC, Dubai, to acquire stake in Garnet Enterprise DMCC in the guise of overseas direct investment.

 

Highlighting various investments between the group entities, part of which was syphoned to Shyam Sundar Jindal's personal entity for making overseas investments, the agency said these entities and promoters made investments in violation of violating FEMA.

 

"It is suspected that BC Jindal group is routing its own funds outside the country in the garb of ODI (overseas direct investments) and parking it outside the country. During the search action, certain documents related to overseas entities, their acquisition, etc., have been recovered," the enforcement agency said.

 

The enforcement agency cited data as showing Shyam Sundar Jindal and his group entities hold multiple overseas entities in Netherlands, the US, Belgium, Italy, Kerkrade, Luxembourg, Singapore, China, the United Arab Emirates, and Germany. The agency said it is suspected that funds from India had been placed in these overseas entities in contravention of provisions of FEMA. Shyam Sundar Jindal was not available in India during the search operations as he had left for Hong Kong citing official work and has not yet returned to India. He is yet to join the investigation, the agency said.  End

 

Reported by Narayana Krishna

Edited by Ashish Shirke

 

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