ED Raids Chowgule Group for Foreign Exchange Violations

The Enforcement Directorate (ED) conducted searches on the Goa-based Chowgule Group. Investigations revealed that USD 228 million were diverted to offshore accounts. Incriminating documents and digital devices were seized.

The Enforcement Directorate (ED) on Friday conducted raids at the premises of the Goa-based Chowgule Group and its connected entities, as part of an investigation into violations of foreign exchange regulations.

Acting under provisions of the Foreign Exchange Management Act (FEMA), the ED searched properties belonging to Chowgule and Company Private Limited (CCPL), Chowgule Steamship Limited (CSL), P P Mahatme and Company, and residences of Chowgule family members, along with former CSL executives, across Goa and Mumbai. According to the agency, credible information indicated these entities diverted USD 228 million from Indian companies over the years.

The funds were allegedly routed through an intricate network of foreign subsidiaries and step-down subsidiaries in places such as Guernsey, UK, and the Marshall Islands. Incriminating documents and digital devices were seized during the raids, said the ED's statement.

(With inputs from agencies.)