ED Raids BC Jindal Group Over ₹505 Crore FEMA Violation.

ED Raids BC Jindal Group in ₹505 Crore FEMA Probe

• Alleged Round-Tripping and Fund Diversion Uncovered

• Key Allegations and Transaction Trail

• The Core Accusation: Sham ODI and Inflated Valuations

The Enforcement Directorate (ED) has intensified its crackdown on corporate FEMA violations by raiding 13 locations linked to the BC Jindal group in Delhi-NCR and Hyderabad. At the center of this ₹505 crore probe are allegations of fund diversion, sham overseas investments, and inflated valuations involving Dubai-based entities. The Sprouts News Investigation Team (SIT) has learned that listed company funds were allegedly written off in a suspected round-tripping scheme, raising major questions about regulatory compliance and corporate governance within the group.

Click Here To Download the News Attachment

ED Launches Major FEMA Probe Against BC Jindal Group

The Directorate of Enforcement (ED) executed extensive search operations on September 18 and 19, 2025, targeting 13 premises associated with the BC Jindal group and its directors. The raids, conducted across the Delhi-NCR region and Hyderabad, mark a significant escalation in a probe into alleged violations of the Foreign Exchange Management Act (FEMA), 1999. According to official ED sources, the investigation focuses on suspected irregularities and the illegal parking of funds overseas by group entities. This exclusive report by the Sprouts News Investigation Team (SIT) delves into the complex financial trail that has attracted regulatory scrutiny.

The agency’s investigation zeroes in on three key companies: Jindal India Thermal Power Ltd (JITPL), Jindal India Powertech Ltd (JIPL), and the listed entity Jindal Poly Films Ltd (JPFL). The ED suspects that these firms, beneficially owned by industrialist Shyam Sundar Jindal, his wife Shubhdra Jindal, and son Bhavesh Jindal, orchestrated the diversion of substantial funds abroad. The initial probe stems from specific intelligence regarding remittances made to a Dubai-based entity, raising red flags about potential round-tripping.

The Dubai Connection: Unpacking the ₹505 Crore Overseas Direct Investment

At the heart of the ED’s case is a specific transaction where the BC Jindal group remitted ₹505.14 crore to its Dubai-based entity, Topaz Enterprise DMCC. This transfer was officially categorized as an Overseas Direct Investment (ODI) for the acquisition of another Dubai firm, Garnet Enterprise DMCC. However, investigators allege this was a guise for moving funds outside India in contravention of FEMA norms. Documents recovered by the ED indicate that Shyam Sundar Jindal is the beneficial owner and sole shareholder of Topaz Enterprise DMCC.

The agency suspects a well-orchestrated scheme of “round-tripping,” where funds are sent abroad under the pretext of sham transactions with inflated valuations, only to be funneled back into the country disguised as foreign investment. Two valuation reports for the foreign entities, prepared by allegedly related valuers, are under the scanner for justifying the substantial remittances. The Sprouts News Investigation Team has learned that Garnet Enterprise DMCC holds a 48% stake in Jindal Polyfilm Netherlands BV, which controls a network of subsidiaries across the Netherlands, the US, and Europe.

Also Read: Delhi High Court Ruling in Patanjali vs. Dabur Chyawanprash Claim Case.

Siphoning Off Listed Company Funds: The JPFL to JIPL Write-Off

A critical aspect of the probe involves the flow of funds from the publicly listed Jindal Poly Films Ltd (JPFL). Between the financial years 2013-14 and 2016-17, JPFL invested ₹703.79 crore in the group’s Jindal India Powertech Ltd (JIPL) to fund a thermal power plant in Odisha. Instead of recovering this massive investment, JPFL wrote it off in FY 2018-19, selling the holdings at a significant loss to its own promoters and group firms. The ED alleges this maneuver effectively siphoned off public investors’ money.

The financial trail intensified in May 2024 when JIPL received ₹853.72 crore from Jindal India Thermal Power Ltd (JITPL) through the redemption of preferential shares. Investigators assert that instead of using these funds to repay JPFL, a sum of ₹505.14 crore was diverted to the Dubai-based Topaz Enterprise DMCC. This diversion, as uncovered by the Sprouts News Investigation Team, highlights a complex web of intra-group transactions that allegedly bypassed regulatory frameworks and disadvantaged public shareholders.

Global Corporate Web and Investigation Status

The BC Jindal group maintains a vast international network of companies, with presence in jurisdictions including the Netherlands, the US, Belgium, Italy, Luxembourg, Singapore, China, the UAE, and Germany. This complex structure is a key focus for the ED as it attempts to trace the ultimate beneficiary of the moved funds. The agency confirmed that further inquiries are ongoing to unravel the complete money trail and establish the culpability of those involved.

A notable point raised by investigators is the absence of Shyam Sundar Jindal during the searches. The industrialist had traveled to Hong Kong, citing official engagements, and has not yet returned to join the probe. The ED’s findings suggest a deliberate attempt to park funds overseas through a network of entities controlled by the promoter family, potentially involving violations of FEMA regulations on several fronts. The outcome of this investigation could have significant implications for corporate governance and foreign exchange compliance among Indian conglomerates.