Hyderabad: The Enforcement Directorate on Saturday booked cases under Foreign Exchange Management Act (FEMA) against three city-based foreign exchange companies. ED seized around Rs 1.5 crore worth unaccounted foreign and Indian currencies during the searches conducted in the city on Friday evening.
Cases were booked against Jain Forex Private Limited, which has branches across the city, Shanthi Forex which has four branches and Kapnox Forex. Searches were conducted following complaints that several foreign exchange companies were selling foreign currencies by accepting demonetized Rs 500 and Rs 1,000 notes, sources said.
“ED officials have seized around Rs 22 lakh worth Indian currency, which we were about to deposit in the bank. There is no violation,” said Mukesh Gandhi, managing partner of Kapnox. “ED officials have conducted searches. This is part of the nationwide raid. No cash has been seized from our firm,” said Mr J. Raju, claiming to be an employee of Jain Forex.
No one was available for comment from Shanthi Forex. Searches were conducted at over 500 locations across the country. It was reported that the Enforcement Directorate was scrutinising 67 foreign exchange dealers and the Directorate General of Central Excise Intelligence was also monitoring prominent jewellers and bullion traders. The ED is looking into foreign exchange violations and money laundering by money exchanges, revenue secretary Hasmukh Adhia said in New Delhi.