Enforcement Directorate Searches Chowgule Group for Foreign Exchange Violations

The Enforcement Directorate (ED) conducted searches on Friday at the premises of the Goa-headquartered Chowgule Group and related entities. This action is part of an investigation into foreign exchange violations under the Foreign Exchange Management Act (FEMA).

Locations Searched

The searches covered the premises of Chowgule and Company Private Limited (CCPL), Chowgule Steamship Limited (CSL), P P Mahatme and Company, seven residential premises of Chowgule family members, and their group, CA Pradip Mahatme, ex-MD and CFO of CSL Mangesh Sawant, in Goa and Mumbai.

Allegations

The ED claims that these entities created various offshore structures to divert USD 228 million from Indian companies. The funds were allegedly routed through multiple foreign subsidiaries and step-down subsidiaries based in Guernsey, UK, and the Marshall Islands.

Seizures

During the searches, the ED seized incriminating documents and digital devices.