It is revealed that multiple bank accounts were opened abroad by the Directors of M/s. Sri Kumaraswamy Mineral Exports Pvt Ltd for parking of funds outside India
FinTech BizNews Service
Mumbai, May 30, 2025: Directorate of Enforcement (ED), Bengaluru Zonal Office has conducted search operations on 27.03.2025 at 3 premises in Bengaluru and one premise in Mangalore, of M/s Kumaraswamy Mineral Exports Pvt. Ltd. and its Directors viz. Santesh & Jyothi Gureddi, Bhavani Prasad Tapal & Renuka Devi, Ravindranath & Uma Alva for violation of FEMA provisions, in the matter of various undisclosed transactions in overseas jurisdictions, as per a press release issued by the ED today.
ED had initiated investigation based on intelligence input received from Income Tax wherein it was prima facie revealed that part of the export proceeds of M/s. Sri Kumaraswamy Mineral Exports Pvt Ltd were diverted by its buyers in the bank accounts of overseas companies wherein Directors of M/s. Sri Kumaraswamy Mineral Exports Pvt Ltd were shareholders. Further, it is understood that Shantesh Gureddi had acquired immovable property at No. 09, Hay’s Mewa, London and which was valued at £ 6.4 million, partly out of the said proceeds.
On the basis of evidences found during the search and statements recorded under FEMA, 1999, it is revealed that the Directors of M/s. Sri Kumaraswamy Mineral Exports Pvt Ltd had incorporated multiple entities in overseas jurisdiction for receipt of profit derived by M/s. Sri Kumaraswamy Mineral Exports Pvt Ltd and diversion of part of export proceeds through these overseas entities.
It is also revealed that multiple bank accounts were opened abroad by the Directors of M/s. Sri Kumaraswamy Mineral Exports Pvt Ltd for parking of funds outside India and for further diversion of funds to multiple bank accounts maintained overseas for purchase of properties outside India in their name and in the name of their family members. Further investigation in under progress.
