ED conducts raids at exports firm for FEMA violations; details of properties amassed abroad emerge

Bengaluru, May 30 (IANS) The Directorate of Enforcement (ED), Bengaluru Zonal Office has conducted search operations on March 27, 2025 at 3 premises in Bengaluru and one premise in Mangaluru, of private firm Sri Kumaraswamy Mineral Exports Pvt. Ltd and found violations of the Foreign Exchange Management Act (FEMA), an official said on Friday.

In an official statement issued on Friday, the ED mentioned: "It is also revealed that multiple bank accounts were opened abroad by the Directors of 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.”

The properties of its Directors Santesh and Jyothi Gureddi, Bhavani Prasad Tapal and Renuka Devi, Ravindranath and Uma Alva for violation of FEMA provisions, in the matter of various undisclosed transactions in overseas jurisdictions, the Enforcement Directorate said.

“The ED had initiated investigation based on intelligence input received from Income Tax wherein it was prima facie revealed that part of the export proceeds of Sri Kumaraswamy Mineral Exports Pvt Ltd were diverted by its buyers in the bank accounts of overseas companies wherein Directors of 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 pounds, partly out of the said proceeds,” the ED stated.

“On the basis of evidences found during the search and statements recorded under FEMA, 1999, it is revealed that the Directors of Sri Kumaraswamy Mineral Exports Pvt Ltd had incorporated multiple entities in overseas jurisdiction for receipt of profit derived by Sri Kumaraswamy Mineral Exports Pvt Ltd and diversion of part of export proceeds through these overseas entities,” the ED said.

An official said that further investigation into the matter in under progress.

--IANS

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