ED searches currency exchange premises for alleged FEMA violations

Representative image. | Photo credit: The Hindu

The Enforcement Directorate searched several locations in Delhi and Uttarakhand’s Rishikesh and Dehradun as part of an investigation into alleged violations of the Foreign Exchange Management Act (FEMA) and Reserve Bank of India (RBI) guidelines governing money exchange activities.

ED developed information that certain licensed full-fledged money changers, their franchisees and affiliates were involved in unauthorized foreign exchange transactions. The agency says they were also involved in “hawala” transactions.

“Foreign currency was alleged to have been exchanged outside the licensed framework without complying with mandatory Know Your Customer (KYC) requirements, prescribed documentation and invoicing procedures,” the agency said.

The searches were conducted at the premises of Ganga Forex Private Limited, JPJN Financial Services Private Limited, Alpine Forex Private Limited, Jai Jeen Forex Private Limited, associated business entities named JPJN Gems Unit and Vintage India, besides the residential premises of key persons managing the concerned entities.

During the operation, the agency seized a substantial amount of foreign currency from various jurisdictions, equivalent to approximately ₹54.58 lakh, ₹33.98 lakh in unaccounted Indian currency, documents and digital devices.

“Collected evidence brought to light the nexus of entities and individuals that enabled international ‘hawala’ transactions through a network of domestic associates and overseas contacts… discrepancies in physical foreign currency stocks were also noted in relation to recorded balances,” it said.

The agency claimed that the “irregularities” prima facie indicated that the books of account and stock records were not kept in accordance with the actual foreign exchange transactions made by the entities.

“The existence of unaccounted cash and foreign currency indicates that unauthorized foreign exchange transactions may have been carried out outside the regular books of accounts in violation of the prescribed regulatory framework,” the ED said.

The ED did not find any purchase registers, customer records, KYC documents, collection certificates or other records related to the purchase of foreign currency at the franchisees’ business premises. “As per RBI’s master directive on money exchange activities, a franchisee is authorized to purchase foreign currency only on behalf of its franchisee and is required to maintain records of such transactions,” it said, adding that investigations are underway to identify the complete financial trail.

Published – 8 Jul 2026 21:35 IST