FEMA case: ED raids three premises of Doha-based businessman in Karnataka

Bengaluru, June 23 The Enforcement Directorate (ED), Bengaluru Zonal Office, has conducted searches at three premises of a Doha-based businessman, Mohammed Iqbal and others in the districts of Udupi and Shivamogga, Karnataka, in connection with a case under the Foreign Exchange Management Act (FEMA), an official said on Monday.

During the search operations on June 19, various incriminating documents related to Foreign Exchange Management Act violations in the form of documents and other digital devices have been found and seized, the ED stated.

During investigation, it was found that Mohammed Iqbal, an NRI and Doha based businessman, doing Manpower service business, had remitted funds to the tune of Rs 70 crore, over the years, from his five business entities located at Doha, to his Non-Resident External Account (NRE)/Non-Resident Ordinary Account (NRO) accounts maintained in India, the ED said in a statement.

Incriminating documents found and seized during the search action indicate that the funds were subsequently utilised by him in violation of Foreign Exchange Management Act provisions like loans given to resident companies, investment in residents proprietorship concerns and firms indulged in real estate business, purchase of agriculture lands and advances to various persons for purchasing lands for developing plots etc.

Further investigation is in progress.

It can be recalled that the Karnataka High Court quashed the complaint and show cause notice issued by the Enforcement Directorate to NGO Greenpeace Environment Trust, Greenpeace India Society, in an alleged case of violation of provisions of the Foreign Exchange Management Act on June 20.

The Karnataka High Court on April 15 directed Google India and three of its senior executives to deposit 50 per cent of the penalties imposed for alleged Foreign Exchange Management Act (FEMA) violations as bank guarantees.

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