ED raids OPG Group, raids conducted at Chennai locations, Rs 8.38 crore recovered during search operation

The Enforcement Directorate (ED) has raided the premises of OPG Group in Chennai. During this, ED recovered 8.38 crore cash in the raid. ED conducted a search operation against OPG Group, Chennai for violation of the Foreign Exchange Management Act (FEMA), 1999, and Foreign Direct Investment (FDI) regulations. Which ED seized about Rs 8.38 crore from the office premises of M/s OPG Group and the residential premises of its directors.

Action taken under FEMA

Let us tell you that, OPG Group is owned by Arvind Gupta, who is in the business of power generation. The company had received foreign direct investment (FDI) of Rs 1148 crore by Seychelles-based companies. The investigation also revealed that the funds were misused, and several violations of FEMA provisions have come to light, including incorrect declaration to RBI. ED investigation under the provisions of FEMA, 1999 revealed that a significant portion of the said FDI funds intended for investment in the power sector, subject to certain conditions under the FDI policy, were illegally invested in the stock market, including investment in mutual funds and also in land and real estate, which is strictly prohibited under FDI guidelines. Further, a large amount was converted into cash with the assistance of vendor companies, which helped in issuing fake invoices, which helped the company withdraw cash. 

Investigation of money laundering and other illegal activities is going on.

During the search, the ED also recovered handwritten notes related to cash transactions. Further investigation revealed that the management of OPG Group had set up several companies in Dubai, Isle of Man, Seychelles, Singapore, and Hong Kong. Through which a significant part of the diverted money was allegedly deposited abroad. These foreign entities are being investigated to trace the money trail and also to find out whether money laundering took place through these companies or if they were used for other illegal activities. These foreign entities are being investigated to determine this.