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CliQ INDIA > National > Enforcement Directorate raids Chowgule group for forex violation | CliqExplainer
National

Enforcement Directorate raids Chowgule group for forex violation | CliqExplainer

In a significant development, the Enforcement Directorate (ED) conducted searches on Friday at multiple locations associated with the Chowgule Group, headquartered in Goa.

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Highlights
  • Alleged diversion of $228 million through offshore entities under scrutiny.
  • Chowgule Group targeted in Enforcement Directorate crackdown.

In a significant development, the Enforcement Directorate (ED) conducted searches on Friday at multiple locations associated with the Chowgule Group, headquartered in Goa. This action, carried out under the provisions of the Foreign Exchange Management Act (FEMA), 1999, targeted Chowgule and Company Private Limited (CCPL), Chowgule Steamship Limited (CSL), PP Mahatme and Company, as well as seven residential premises belonging to Chowgule family members.

The ED’s operation also encompassed individuals such as CA Pradip Mahatme and former MD and CFO of CSL, Mangesh Sawant, in locations spanning Goa and Mumbai. The probe was initiated based on credible information indicating that these entities had allegedly established offshore structures, diverting an estimated $228 million from Indian companies over several years. These funds were purportedly routed through multiple foreign subsidiaries and step-down subsidiaries situated in Guernsey (UK) and the Marshall Islands.

According to a statement released by the ED, the search operations yielded various incriminating documents and digital devices, all of which were seized for further investigation. The ED’s scrutiny aims to unravel the details of financial transactions and ascertain any potential violations of foreign exchange regulations.

The Chowgule Group, a prominent conglomerate with diversified interests, is now under the ED’s scanner as the investigation progresses.

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