ED raids Jindal Group offices over alleged foreign remittance violations
The Enforcement Directorate (ED) recently raided 13 offices linked to the B C Jindal Group in Delhi-NCR and Hyderabad on September 18 and 19.
The investigation centers around claims that the group's companies—Jindal India Thermal Power, Jindal India Powertech, and Jindal Poly Films—moved money overseas in ways that may have broken India's Foreign Exchange Management Act (FEMA).
₹505 crore was sent abroad through 'sham transactions': ED
According to the ED, about ₹505 crore was sent abroad through what they call "sham transactions" and by inflating share values.
They're looking into whether these moves violated FEMA rules.
Key details of the case
Between 2013-14 and 2016-17, Jindal Poly Films invested ₹703 crore in Jindal India Powertech Ltd; this was later written off at a loss.
In May 2024, over ₹500 crore from share redemptions allegedly ended up with a Dubai-based firm owned by Shyam Sundar Jindal.
He reportedly owns several foreign subsidiaries connected to these deals but hasn't joined the investigation yet.