Kochi: The Enforcement Directorate, which has been strengthened recently with additional staff and clear directions to take strong action against the violators of Foreign Exchange Management Act (FEMA) 1999, will come out with some big scoops involving top guns in Kerala. The department has reportedly begun investigations against the Kerala Cricket Association (KCA), Harrisons Malayalam and certain Malayalam movie actors who have allegedly been violating FEMA for evading tax.
The investigation against the KCA includes violation of FEMA and money laundering rules in connection with a one-day international match held at the Kochi international stadium. The investigation against the cine actors deals with the international money transactions they conducted in the past few years.
However, the officials were not willing to give out further details as they fear it would affect the investigations. “We are investigating the cases. We are not in a position to give away further details as it would affect the probe,” said Mr John Kingsly, joint director of ED.
The Kerala unit of the ED has been operating without a joint directorate and enough staff for the past several years. Karnataka joint director was looking after the Kerala unit as additional charge till now. It was only recently the Kerala sector was given a new joint director and additional staff for its main office in Kochi and the sub office in Kozhikode.
The department had recently put a businessman based in Malappuram in jail for failing to pay a penalty of '15 lakh for operating hawala deals worth '60 lakh. He was released after the penalty was paid. The properties of Joby Mathew, a UK-based tycoon who had allegedly swindled money from many in an education scam, were also attached by the ED recently after finding that he was guilty.
