The Enforcement Directorate(ED) has conducted searches at the offices of leading Chennai-based cement manufacturer– India Cements Ltd.– as part of a foreign exchange violation investigation, official sources said on Thursday. The searches were launched on Wednesday at two office premises of the company in Chennai and one in Delhi, under the provisions of the Foreign Exchange Management Act (FEMA), the sources said.
The company said in a regulatory filing that it was cooperating with the federal probe agency.”Certain officials of Enforcement Directorate visited our corporate office in Chennai during 31.01.2024 and 01.02.2024 and conducted a search to find out if any irregularities concerning FEMA.”
“We have provided/undertaken to provide all the clarification/documents sought by them. We do not anticipate any material impact on the company with regard to the aforesaid investigation,” India Cements said.
According to the sources, the probe pertains to the affairs of Indian Cements’ associate company India Cements Capital Ltd (ICCL) and transfer of funds abroad worth about Rs 550 crore, they said.
The role of some alleged dubious agents and directors are under the probe scanner of the ED, they said.
ICCL deals in foreign exchange, money transfer, travel insurance and remittances.
Founded in 1946, the India Cements said on its website that “while retaining cement over the years as its mainstay, India Cements has ventured into related fields like shipping, captive power and coal mining.”
