ED Cracks Down on Chowgule Group Over Foreign Exchange Violations

The Enforcement Directorate conducted searches at the Goa-based Chowgule Group's premises on accusations of foreign exchange violations. The investigation revealed the diversion of $228 million through offshore structures. Incriminating documents and digital devices were seized during these searches.

In a significant development, the Enforcement Directorate (ED) on Friday conducted a series of searches at the premises of the Goa-headquartered Chowgule Group and related entities as part of an investigation into alleged foreign exchange violations.

These searches, carried out under the provisions of the Foreign Exchange Management Act (FEMA), encompassed properties linked to Chowgule and Company Private Limited (CCPL), Chowgule Steamship Limited (CSL), P P Mahatme and Company, and several residential premises in Goa and Mumbai.

The federal agency claimed that credible information indicated the creation of various offshore structures by these entities, leading to the diversion of USD 228 million from Indian companies through multiple foreign subsidiaries and step-down subsidiaries based in Guernsey, UK, and the Marshall Islands. Incriminating documents and digital devices were seized during the operation, the ED stated.

(Disclaimer: With inputs from agencies.)