Enforcement Directorate (ED) investigations into the alleged violation by Sahara India companies of foreign exchange rules in the overseas transfer of about Rs. 3,662 crore in 2010 may get clubbed with its ongoing money laundering probe against the group on charges of nonrefund to investors.
The Mumbai zonal office of the ED had last November registered the money laundering case against the group on the basis of the Securities and Exchange Board of India (SEBI) report on the alleged nonrefund to depositors.
The agency on Friday issued showcause notices to Sahara India companies and its chief Subrata Roy, seeking explanations for the alleged violations committed under the Foreign Exchange Management Act (FEMA) while transferring money out of India for the purchase of Grosvenor House Hotel from the Royal Bank of Scotland.
While the group has earlier maintained that there was not a single instance of violation and that all transactions were legal, the ED suspects that the Sahara group companies and their subsidiaries did not adhere to the mandatory guidelines in getting funds transferred overseas.
The ED alleges that the funds utilised to acquire the hotel originated from the Sahara India Real Estate Corp. Ltd. and the Sahara Housing Investment Corp. Ltd., from where it made way to Sahara India Commercial Corporation Limited (SICCL) for it to acquire land and undertake project developments. Funds were subsequently routed through Sahara subsidiary Aamby Valley Limited (AVL) to Aamby Valley (Mauritius) Limited and used to purchase the hotel, according to the agency.
