Power Play: Illegal FDI Diversion Uncovered in Chennai

The Enforcement Directorate seized over Rs 8 crore from a Chennai power generation firm for alleged FDI and foreign exchange law violations. The OPG Group misused Rs 1,148 crore in foreign direct investments by diverting funds to stock and real estate markets, breaching FDI rules and laundering cash.

The Enforcement Directorate (ED) has confiscated more than Rs 8 crore during a raid on a Chennai-based power generation company, accusing them of foreign direct investment (FDI) and foreign exchange law violations.

Investigations revealed that the OPG Group improperly used Rs 1,148 crore obtained as FDI from companies in Seychelles. The funds, meant for power sector investments, were redirected illegally to stock and real estate markets, violating FDI guidelines.

Aiding the financial misconduct, vendor companies issued fake invoices to convert substantial amounts into cash. Authorities are further probing overseas entities tied to the group for potential money laundering activities.

(With inputs from agencies.)