Panama Paper leaks: ED raids Bengaluru firm in violation of FEMA

Bengaluru (Karnataka) [India], June 6 : Enforcement Directorate (ED) carried out search operations at the premises of a Bengaluru-based firm and its director in connection with a money laundering case.

The search operations were conducted at Shree Parvathi Tex (India) Pvt Ltd and its director Rajendra Patil in acase registered under the provisions of the Foreign Exchange Management Act (FEMA), 1999.

According to ED statement, the premises covered include the residential premises of Patil as well as the office premises of Shree Parvathi Tex (India) Pvt Ltd, where Rajendra Patil is one of the Directors along with his family members.

The searches were conducted on June 2.

ED initiated the investigation under provisions of FEMA, 1999 on the basis of Panama Paper leaks where the name of Rajendra Patil surfaced. It was alleged that Patil made an undisclosed credit of Rs 66.35 crore in offshore entities.

The searches conducted revealed that Patil has invested in various companies in Dubai, Tanzania and the British Virgin Islands. Further, he also held bank accounts in Dubai and Tanzania, the agency said.

During the course of the search, several documents related to the overseas investment made by Rajendra Patil were recovered and seized.

Further investigation is in progress.