ED slaps Rs 660-cr notice on Videocon

The Videocon Group has come under the scanner of Enforcement Directorate for alleged violation of Foreign Exchange Management Act.

The Special Director of Directorate's Mumbai wing issued a show cause notice to the $5 billion Group, which has interests in ranging from consumer goods to real estate to telecom.

In a tweet, the ED said it has issued the notice for FEMA contravention of Rs 660 crore.

The ED action came following a direction from the Reserve Bank of India (RBI) after it came to light that Videocon raised funds overseas through wholly owned subsidiaries a few years ago and invested it in the Group.

The Group allegedly did not declare these funds, which were generated by its own subsidiaries.

The ED, which has been investigating the case since 2011-12, has charged Videocon under Section 6 (3) of FEMA, which deals with transfer of foreign security by a person resident in India.

The investigators have now given one-month time for the Group file its reply on the issue.

In his reaction, Videocon Group Chairman Venugopal Dhoot said that they have "not yet received any notice in this regard so far."

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