ED Searches BC Jindal Group Firms Over Suspected FEMA Violations

The Enforcement Directorate conducted search operations at 13 premises linked to companies of B.C. Jindal and Shyam Sundar Jindal, along with their directors and office bearers, over alleged violations of the Foreign Exchange Management Act, 1999. The searches were carried out in Delhi NCR and Hyderabad on September 18–19, the agency said in a press release.

Offices of Jindal India Thermal Power Ltd., Jindal India Powertech Ltd., and Jindal Poly Films Ltd. were searched in relation to overseas investments, alleged parking of funds in offshore entities, and round-tripping, it said.

The agency alleged that group entities beneficially owned by Shyam Sundar Jindal, his wife Shubhdra, and son Bhavesh had remitted ₹5.05 billion to Topaz Enterprise DMCC, Dubai, to acquire a stake in Garnet Enterprise DMCC under the guise of overseas direct investment.

Officials said funds were also siphoned from group entities to Shyam Sundar Jindal’s personal entity for overseas investments. The ED suspects the group routed its own funds outside India in violation of FEMA provisions. Documents related to offshore acquisitions were seized.

The agency said the Jindals hold multiple entities in the Netherlands, US, Belgium, Italy, Luxembourg, Singapore, China, UAE, and Germany, which may have been funded in contravention of FEMA rules. Shyam Sundar Jindal, who left for Hong Kong citing official work before the searches, has not yet returned or joined the probe.