ED: ED raided the premises of OPG Group in Chennai and during the search, ED recovered Rs 8.38 crore in cash and also recovered handwritten notes related to the transactions.

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The Enforcement Directorate (ED) has raided the premises of OPG Group in Chennai. During this, ED has recovered Rs 8.38 crore in cash in the raid. ED conducted a search operation against OPG Group, Chennai for violation of Foreign Exchange Management Act (FEMA), 1999 and Foreign Direct Investment (FDI) Regulations. In 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 the owner of OPG Group is Arvind Gupta, who does 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 money was 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, was illegally diverted into the stock market, including investments in mutual funds and also invested in land and real estate, which is strictly prohibited under the FDI guidelines. Further, a large amount was converted into cash with the assistance of vendor companies, which helped in issuing fake invoices, thereby helping the company to siphon off cash.

Investigation of money laundering and other illegal activities being done
During the search, ED has also recovered handwritten notes related to the transaction of cash. 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 portion of the diverted money was allegedly deposited abroad. These foreign entities are being investigated to trace the money trail and also to find out if money laundering took place through these companies or they were used for other illegal activities. These foreign entities are being investigated to determine this.