India’s Enforcement Directorate (ED) has launched a big crackdown on the Jindal group companies, raiding 13 locations in Delhi-NCR and Hyderabad. The operations targeted firms linked to B.C. Jindal and Shyam Sunder Jindal, focusing on possible breaches of the Foreign Exchange Management Act (FEMA) from 1999.
These ED raids happened on September 18 and 19, kicking off a deeper probe into shady overseas investments, round-tripping of funds, and stashing money in foreign companies owned by the group. Authorities suspect the Jindal entities funneled a huge sum—Rs 505.14 crore—out of India to their own setup in Dubai called Topaz Enterprise DMCC. They disguised it as an overseas direct investment (ODI) to buy shares in another subsidiary, Garnet Enterprise DMCC.
Digging further, the ED uncovered a web of tricky financial moves. From 2013 to 2017, Jindal Poly Films Ltd (JPFL), a listed company, pumped Rs 703.79 crore into Jindal India Powertech Ltd (JIPL). But instead of getting that money back, JPFL wrote off the investment and sold it cheap to promoters and related group firms.
Later, JIPL got Rs 853.72 crore from another group player, Jindal India Thermal Power Ltd (JITPL). Out of that, investigators say Rs 505.14 crore went straight to Shyam Sunder Jindal’s personal Dubai entity. The whole deal relied on a fake valuation of the foreign company’s shares, cooked up by two connected appraisers to justify the big transfer.
During the searches, ED teams grabbed documents proving Shyam Sunder Jindal owns and runs Topaz Enterprise DMCC. He wasn’t around for the raids—he’d already jetted off to Hong Kong and hasn’t come back or cooperated with the money laundering probe yet.
The investigation rolls on, with ED now eyeing funds parked in other overseas spots tied to the group, including the USA, Belgium, Italy, and Luxembourg. This FEMA case highlights growing scrutiny on corporate fund flows abroad.
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