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India's ED searches firm, director over undeclared foreign assets
🇮🇳 India /Crime & Justice

India's ED searches firm, director over undeclared foreign assets

From Hindustan Times · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

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  • India's Enforcement Directorate searched a private company and its director over allegations of undeclared foreign assets and violations of foreign exchange rules.
  • Searches revealed that export proceeds were not received in India and were potentially diverted to third parties or undisclosed foreign entities.
  • The director, also a film producer linked to actor Shekhar Suman, allegedly attempted to destroy digital evidence during the searches.

India's Enforcement Directorate (ED) conducted searches on Thursday against Kalanee Impex Pvt Ltd and its director, businessman Dharmesh Sangani, in Mumbai. The investigation centers on allegations of undisclosed foreign assets, foreign bank accounts, and violations related to export proceeds under the Foreign Exchange Management Act (FEMA).

money which ought to have been received in India has not come to India despite lapse of substantial time.

— ED officerAn ED officer explained the findings related to export proceeds during the investigation.

Officials familiar with the investigation stated that searches revealed money that should have been received in India had not been. Export proceeds from overseas buyers were not realized, and no extensions were obtained from the Authorized Dealer Bank. Furthermore, evidence suggested that export proceeds were received from third-party entities, not the buyers listed on invoices.

The ED also claimed to have found evidence of undeclared foreign assets and bank accounts. This included substantial shareholding by Sangani in an undisclosed Canadian company, along with undisclosed associated foreign bank accounts and transactions. An undeclared UAE business entity and undisclosed bank accounts in the United States were also identified.

For example, substantial shareholding of Dharmesh Sangani was found in an undisclosed Canadian company. Associated foreign bank accounts and related transactions were also not disclosed before appropriate authorities. In another instance, an undisclosed UAE business entity has been identified.

— second officialA second official detailed the discovery of undeclared foreign assets and entities.

During the searches, Sangani reportedly attempted to destroy digital evidence by throwing his mobile phone from the 13th floor of a building. ED officials retrieved and seized the phone. Sangani is also reportedly under investigation by US Customs authorities for certain transactions. In a separate incident in September 2016, UK Border Force officers seized approximately 7.4 kg of gold jewelry from Sangani due to under-declaration.

On Thursday, when ED went for the raid, Sangani tried to destroy the digital evidence by throwing his mobile from the 13th floor of a building, for which a complaint was given to Mumbai Police by ED.

— first officerThe first officer described Sangani's alleged attempt to destroy evidence during the search.
DistantNews Editorial

Originally published by Hindustan Times in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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