ED begins probe against producer Dharmesh Sangani; detects undisclosed foreign assets, cross-border transactions
The Enforcement Directorate (ED) conducted searches under the provisions of the Foreign Exchange Management Act, 1999 (FEMA) on July 9, in connection with an investigation
The Enforcement Directorate (ED) conducted searches under the provisions of the Foreign Exchange Management Act, 1999 (FEMA) on July 9, in connection with an investigation related to Kalanee Impex Private Limited and its active director, Dharmesh Narendra Sangani. During the raids, the Enforcement Directorate seized evidence of undisclosed foreign assets, undisclosed foreign bank accounts and suspicious cross-border transactions. Officials said undisclosed foreign banks’ accounts in Canada, the USA and the UAE have been identified. The search proceedings revealed that "money which ought to have been received in India has not come to India despite lapse of substantial time," officials said. "Export proceeds from certain overseas buyers had not been realised and no extension of time had been obtained from the Authorised Dealer Bank.
There were no documented recovery efforts," officials said. The ED investigation further revealed receipt of export proceeds from third-party entities other than the consignee or buyer named in export invoices/shipping bills. "Evidence relating to undisclosed foreign assets and foreign bank accounts was also found during the search proceedings," they added, claiming that a substantial shareholding of Dharmesh Sangani was found in an undisclosed Canadian company. “For example, Substantial shareholding of Mr. Dharmesh Sangani was found in an undisclosed Canadian company. Associated foreign bank account and related transactions were also not disclosed before appropriate authorities. In another instance, undisclosed UAE Business entity has been identified,” officials said. According to officials, customs authorities of the USA and the UK are also investigating certain transactions of Dharmesh Sangani.
"The ED is also investigating FEMA violations in such transactions," they said. During the search operation, officials alleged that Dharmesh Sangani attempted to destroy digital evidence by throwing his mobile phone from the 13th floor of a building, following which a complaint was filed by the ED with Mumbai Police. "The Mobile was later retrieved by ED officers and seized." Earlier, in September 2016, the agency said UK Border Force officers had seized approximately 7.4 kg of gold jewellery being brought into the UK by Dharmesh Sangani, alleging that the same was under-declared. Who is Dharmesh Narendra Sangani? Dharmesh Narendra Sangani is an entrepreneur-turned-producer. He was appointed as the Director of UK-based DHARMESH SANGANI LTD in 2015.
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