ED raids India Cements office in FEMA probe

The Enforcement Directorate (ED) conducted searches at the offices of Chennai-based leading cement maker India Cements Limited as part of a probe into foreign exchange irregularities, official sources said on Thursday.

Sources said searches were conducted under provisions of the Foreign Exchange Management Act (FEMA) at two of the company’s offices in Chennai and one in Delhi on Wednesday.

Famous industrialist N Srinivasan is the owner of India Cements, which owns the Chennai Super Kings (CSK) T-20 cricket team IPL. Srinivasan is the former president of BCCI.

The company said in a regulatory filing that it is cooperating with federal investigators.

“Certain officers of the Enforcement Directorate visited our corporate office in Chennai between January 31, 2024 and February 1, 2024 and conducted searches to ascertain whether there were any violations related to FEMA. “We have provided/undertaken to provide all clarifications/documents requested by them. We do not expect the above investigation to have any significant impact on the company,” Indian Cements said.

Sources said the investigation involves the affairs of Indian cement associate India Cement Capital Ltd (ICCL) and overseas fund transfers worth about Rs 550 crore.

They said the roles of some suspected agents and directors were being investigated by the Education Department.

ICCL is engaged in foreign exchange, money transfer, travel insurance and remittance business.

The Indian Cements Corporation, established in 1946, said on its website, “Over the years, while retaining cement as its mainstay, the Indian Cements Corporation has also ventured into related areas such as shipping, captive power and coal mining.”

(This story has not been edited by News18 staff and is published from associated news agency – PTI)