Naveen Jindal & family under ED radar

Investigative agency starts preliminary inquiry based on tip off from Singapore financial intelligence unit; company denies receiving any communication from ED

The Enforcement Directorate (ED) has started a probe against industrialist and member of Parliament Naveen Jindal and his family for alleged violation of Foreign Exchange Management Act provisions.

The agency is investigating whether or not foreign exchange laws were violated in operating bank accounts in Singapore, based on a tip-off by the Singapore Financial Intelligence Unit. The foreign agency has claimed four accounts held by the Jindals were being operated in a Swiss private bank, adding some transactions in these accounts raised doubt.

In an e-mailed response, a Jindal Steel and Power Ltd spokesperson said the Jindals hadn’t received any notice or information from the ED in this regard. He added Reserve Bank of India (RBI) norms allowed Indian residents to remit funds abroad, subject to a particular cap.

“The policy provides a framework of such remittances and the compliance to be done by resident individuals. Therefore, in keeping with the terms of the scheme and strictly in compliance with the scheme, Naveen Jindal and other family members have remitted the amounts outside India through Barclays Bank, the authorised dealer of RBI,” the spokesperson said.

According to norms, the Jindals didn’t have to secure a clearance from RBI directly, the spokesperson said, adding it was incumbent upon the dealer bank to do so.