Bhopal: The Enforcement Directorate’s (ED) Bhopal Zonal Office has carried out search and seizure operations at three premises linked to M/s Rajul Group and its partner Priyank Mehta in Madhya Pradesh’s Jabalpur on Thursday.
The action, conducted under the provisions of the Foreign Exchange Management Act (FEMA), 1999, comes in connection with alleged misuse of the Liberalised Remittance Scheme (LRS) for acquiring immovable properties abroad.
The investigation was initiated following inputs from the Income Tax Department.
During a search at Rajul Group in September 2023, tax officials reportedly found evidence suggesting possession of foreign assets by Mehta.
Subsequent inquiries revealed that he had purchased a residential flat in Portugal’s state capital Lisbon for €5,10,000 and was earning rental income from the property.
Authorities noted that these foreign investments and income were not disclosed in the Foreign Assets Schedule of his income tax returns, an ED press statement said on Thursday.
The ED’s latest operation resulted in the seizure of unaccounted cash worth Rs 31 lakh from Mehta’s premises.
Investigators also traced fund transfers amounting to $5,48,000 to the US under the LRS scheme, which were later routed to Portugal.
In addition, 4,20,998 Euro (equivalent to Rs 3.65 crore) were transferred to Portugal and used to purchase the flat in Lisbon.
Officials said a remaining balance of about Rs 2.1 crore is still lying in Mehta’s bank account in Portugal, the central agency said.
The central agency suspects that these transactions were structured to bypass disclosure norms and conceal foreign assets.
The case highlights growing concerns over the misuse of the LRS framework, which allows resident individuals to remit up to $250,000 per financial year for permissible current or capital account transactions, including overseas property purchases.
While the ED has not yet disclosed whether further arrests are imminent, officials confirmed that detailed investigation is underway to establish the full extent of violations and identify possible money laundering angles.
The seizure of cash and documentation marks a significant step in the probe, which could have wider implications for compliance with FEMA and the Income Tax Act.
(IANS)
