Sunday, July 21, 2024

Enforcement Directorate Conducts Searches at India Cements Offices in FEMA Probe

The Enforcement Directorate (ED) has initiated searches at the offices of India Cements Ltd., a prominent Chennai-based cement manufacturer, as part of an investigation into foreign exchange violations under the Foreign Exchange Management Act (FEMA), according to official sources on Thursday. The searches, conducted on Wednesday, targeted two office locations in Chennai and one in Delhi.

India Cements Ltd. released a regulatory filing affirming its cooperation with the federal probe agency. In their statement, the company confirmed that officials from the Enforcement Directorate visited their corporate office in Chennai on January 31, 2024, and February 1, 2024, conducting a search to identify any irregularities related to FEMA. The company assured that it has provided, and is committed to providing, all the necessary clarifications and documents sought by the authorities. They expressed confidence that the investigation would not have a significant impact on the company.

Sources indicate that the probe is focused on the activities of India Cements’ associate company, India Cements Capital Ltd. (ICCL), specifically concerning the transfer of funds amounting to approximately Rs 550 crore abroad. The Enforcement Directorate is scrutinizing the roles of certain individuals, including alleged dubious agents and directors.

ICCL is involved in foreign exchange, money transfer, travel insurance, and remittances. Founded in 1946, India Cements, while maintaining its core business in cement, has diversified into related sectors such as shipping, captive power, and coal mining over the years.

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