Enforcement Directorate raids JSPL premises for 'forex rule violation'

  The Enforcement Directorate (ED) on Thursday carried out searches at multiple premises of Jindal Steel and Power Ltd (JSPL) and also places linked to its chairman, Naveen Jindal, for possible violations of forex rules, said officials of the agency.

  “There are two-three separate cases going on under the Foreign Exchange Management Act (FEMA). Some are related to its (JSPL‘s) owner/promoter’s bank accounts overseas,” an official privy to the case told Business Standard.

  Sleuths searched locations in Delhi and Gurugram. They will cover some more places and the searches will continue for a day or two, an official said.

  Digital records, laptops, and documents have been taken into possession for scrutiny, another person said.

  Sources said the federal agency had inputs from a financial intelligence unit about accounts opened abroad and also some bits of information related to a recent transaction, a source said, without giving detail.

  A statement by a spokesperson for JSPL to the exchanges read: We would like to bring to your notice that our office premises in Delhi and Gurugram have been visited today by the officials from ED for seeking business related information, which is being provided to them.

  “We would like to reiterate here that the Company has an exemplary track record of corporate governance and disclosing the required information to the regulator and will continue to do so.”

  JSPL, along with Tata Steel, JSW Steel, SAIL, and Nippon Steel India, is a key steel manufacturer in India.

  Jindal Steel shares plunged 6 per cent to a three-week low in their biggest fall since mid-March.

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