The Enforcement Directorate (ED) has sent a notice to Kolkata-based Shree Ganesh Jewellery House and its promoters for unauthorised foreign exchange holdings and parking of funds worth ₹7,220 crore outside of India in its biggest-ever action under the Foreign Exchange Management Enforcement Act (FEMA).

The ED has sent the notice to Shree Ganesh Jewellery House and its promoters - Nilesh, Umesh and Kamlesh Parekh.

“Adjudicating Authority under FEMA issues Show Cause Notice to M/s Shree Ganesh Jewellery House (I) Ltd & its Promoters Nilesh Parekh, Umesh Parekh and Kamlesh Parekh & others for unauthorised parking of funds to the tune of ₹7,220 crore with their entities outside India,” ED had tweeted from their official account.

ED in its official statement had said that the Parekhs were “serial offenders” with multiple cases pending with other departments including Central Bureau of Investigation, Directorate of Revenue Intelligence, Special Economic Zone, Enforcement Directorate and even internationally.

The DRI had arrested Nilesh Parekh in 2018 for alleged fraud in the diversion of 1,700 kg of primary gold.

According to a press statement issued by the DRI, Parekh was guilty of several other violations, including non-realisation of remittance of ₹7,500 crore on account of export of gems and jewellery and defrauding an SBI-led consortium of banks, by non-payment of a loan of ₹2,672 crore as per previous reports.

Parekh was also arrested by the CBI in 2017 in connection with defrauding a consortium of banks as per the report.

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