Rashesh Shah rejects allegations of FEMA violations

Our Bureau Mumbai | Updated on January 12, 2020 Published on January 12, 2020

Rashesh Shah, Chairman & CEO, Edelweiss Group. File Photo   -  BusinessLine

Says no link with Capstone Forex


Edelweiss Group Chairman and Chief Executive Officer (CEO) Rashesh Shah has rejected the alleged FEMA violations. He also denied that the group has any relationship with Capstone Forex and has also rejected the alleged FEMA violations.

"We appreciate that regulators and agencies have an obligation to investigate; if any information is sought from us, as a responsible corporate citizen, we will of course provide the same," Shah said in a statement an letter titled an Update from Edelweiss.

The Enforcement Directorate (ED) issued summons to Edelweiss Group and Shah to join a case involving an alleged Rs 2,000 crore violation of FEMA provisions. This pertains to Mumbai based Capstone Forex Pvt Ltd.

Shah said that while he was unable to go in person to the ED, a senior authorised representative went with the requisite information.

"Needless to say, if in the future any assistance or support to the investigation is requested from us, we will cooperate fully, " he stressed.

He also denied that Sanjay Nathalal Shah, who is a chartered accountant and an independent director of a few of Edelweiss Group companies, is related to him. "Let me reiterate that he has no other association with the Edelweiss Group, nor is he in any way related to me; you will appreciate that Shah is a common name, " he said.

Denying all allegations, Shah further said that the group remains committed to the highest governance standards, built on a strong foundation of ethics.

"We take our responsibilities as good corporate citizens extremely seriously. We find our strength in the unshaken trust reposed by our customers, shareholders, partners and employees," he said.

Last week, Mumbai Enforcement Directorate (ED) had summoned Rashesh Shah, in relation to an alleged Rs2000 crore forex matter. The share price of Edelweiss Financial Services crash by 10 per cent in the final hour of the trading session on Friday.

An ED notice issued on January 3 to Shah showed that the investigative agency’s assistant director in Mumbai, Sunil D. Pisharody had called him for questioning on January 9. The summons was with regard to the dealings of M/s Capstone Forex Pvt. Ltd., a Mira Road, Mumbai’s distant suburb, registered company, the document showed.

The notice said Shah was to attend ED Balard Pier office at “11.30 am on Friday to give evidence, produce books of accounts and other documents specified under the schedule".

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Published on January 12, 2020
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