Mumbai: The Enforcement Directorate (ED) has issued summons to Edelweiss group and its chairman Rashesh Shah in a ₹2,000-crore Foreign Exchange Management Act (FEMA) case, and sought more information.
The ED action pertains to Edelweiss’s alleged dealing with Capstone Forex Pvt Ltd. Mint has reviewed a copy of the summon issued on 3 January.
Edelweiss Financial Services Ltd shares fell 9.98% to ₹105.50 on the news.
In a statement, Edelweiss said: “We have received a communication from the ED to appear and provide information about Edelweiss group companies’ dealings with a company called Capstone Forex Pvt ltd. We would like to state that none of our companies have any transactions with Capstone."
The ED in its summon asked Shah, or his authorized representative, to be present before it to “give evidence and to produce books of account or other documents" to prove or deny Edelweiss Financial’s dealings with Capstone.
The ED under FEMA provisions probes irregular foreign exchange transactions. If the allegations are proven, the ED can levy a penalty of up to three times the amount involved, and defaulting on the penalties can attract imprisonment.