New Delhi: The Enforcement Directorate (ED) has uncovered evidence pointing to undisclosed overseas assets, foreign bank accounts and questionable cross-border financial transactions during searches conducted under the Foreign Exchange Management Act (FEMA), 1999, in connection with Kalanee Impex Private Limited and its director, Dharmesh Narendra Sangani.
The searches were carried out on July 9 as part of an ongoing probe into alleged violations of foreign exchange regulations. According to officials, preliminary findings indicate that export proceeds that were required to be repatriated to India remained outstanding despite the expiry of the prescribed time limit.
Investigators also recovered documents and digital records suggesting the existence of foreign assets and financial accounts that were allegedly not disclosed to the relevant authorities.
During the operation, the ED reportedly identified Sangani’s substantial shareholding in a company based in Canada. Officials stated that the associated foreign bank account and related financial transactions had not been declared before the competent authorities.
The investigation further revealed links to a business entity in the United Arab Emirates that was also allegedly not disclosed. As part of the ongoing examination, officials have so far identified previously unreported bank accounts connected to Canada, the United States and the UAE.
The agency is now examining the movement of funds through these accounts to determine whether any provisions of FEMA were violated.
Officials also said that certain international financial transactions involving Dharmesh Sangani are already under scrutiny by customs authorities in the United States and the United Kingdom. The ED is coordinating its investigation to determine whether those transactions also involve breaches of Indian foreign exchange laws.
The agency has not disclosed the value of the suspected foreign assets or the total amount involved in the transactions under investigation. Officials indicated that the evidence seized during the searches is being analysed, and further action will depend on the outcome of the examination.
The FEMA investigation remains ongoing, with the Enforcement Directorate expected to continue examining overseas financial links, asset ownership and compliance with India’s foreign exchange regulations. No further details have been officially released at this stage.
