Chennai, June 5 (IANS) The Directorate of Enforcement’s (ED) Chennai Zonal Office has ordered the seizure of immovable property worth approximately Rs 16.19 crore belonging to RR Industries Limited, under Section 37A of the Foreign Exchange Management Act (FEMA), 1999.
The ED initiated its investigation following preliminary findings that revealed irregularities in overseas remittances made by Hanudev Investment Private Limited (HIPL), a company affiliated with the RR Group.
The probe centred on an investment of Rs 16.19 crore made by HIPL as Overseas Direct Investment (ODI) into RR Industries Singapore Pte Ltd (RRISPL), purportedly for engaging in coal trading operations in Indonesia and nearby regions.
According to the ED, the remittance violated the Reserve Bank of India’s guidelines and FEMA regulations. Further investigation revealed that no legitimate assets or business operations materialised from the investment.
The funds were ultimately diverted to an Indonesian firm named Novem Coal Resources (NCR), managed by Ramnath, a cousin of HIPL’s Director R. Ravi.
Despite the familial link and the passage of over 14 years, HIPL and its group entities made no efforts to repatriate the funds or pursue returns. No assets or profits were generated, and no attempts were made to recover the money after the expiry of the initially agreed interest-free period. Instead, the investment was quietly written off in HIPL’s financial records without satisfactory justification.
Ravi’s explanation – that the write-off was based on professional advice due to uncertainty over mine ownership – was found to be unsubstantiated and unconvincing.
The ED has termed the entire transaction a deliberate attempt to park funds overseas, evade scrutiny, and potentially facilitate personal enrichment. Supporting statements from Build India Capital Advisors LLP further corroborated the ED’s conclusion that the case involved clear fund diversion and manipulation by the accused. Further proceedings under FEMA are expected as the investigation continues.
–IANS
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