The Enforcement Directorate (ED) logo.
Credit: PTI File Photo
Bengaluru: The Enforcement Directorate (ED) said on Friday it had searched the premises of Kumaraswamy Mineral Exports Pvt Ltd and its
directors.
The searches were held on March 27 at three locations in Bengaluru and one in Mangaluru for FEMA violations, in the matter of various undisclosed transactions in overseas jurisdictions.
The directors who were searched were Shantesh and Jyothi Gureddi, Bhavani Prasad Tapal and Renuka Devi, Ravindranath and Uma
Alva.
“ED had initiated (the) investigation based on intelligence input received from Income Tax wherein it was prima facie revealed that part of the export proceeds of M/s Sri Kumaraswamy Mineral Exports Pvt Ltd were diverted by its buyers in the
bank accounts of overseas companies wherein directors of M/s Sri Kumaraswamy Mineral Exports Pvt Ltd were shareholders. Further, it is understood that Shantesh Gureddi had acquired immovable property at No. 09, Hay’s Mewa, London, and which was valued at £6.4 million, partly out of the said proceeds,” the agency
said.
“On the basis of evidences found during the search and statements recorded under FEMA, 1999, it is revealed that the Directors of M/s Sri Kumaraswamy Mineral Exports Pvt Ltd had incorporated multiple entities in overseas jurisdiction for receipt of profit derived by
M/s Sri Kumaraswamy Mineral Exports Pvt Ltd and diversion of part of export proceeds through these overseas entities. It is also revealed that multiple bank accounts were opened abroad by the Directors of M/s Sri Kumaraswamy Mineral Exports Pvt Ltd for parking of funds outside India and for further diversion of funds to multiple bank accounts maintained overseas for purchase of properties outside India in their name and in the name of their family members,” it
added.