This action was carried out under the provisions of Section 37A of the Foreign Exchange Management Act, 1999
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In a significant development, the Directorate of Enforcement (ED) has taken action against businessman Bhupesh Agarwal and his wife, seizing two residential flats worth Rs 2.83 crore in the posh area of Borivli, Mumbai. This action was carried out under the provisions of Section 37A of the Foreign Exchange Management Act, 1999.
The investigation was initiated based on a crucial tip-off, alleging that Bhupesh Agarwal had created and utilised multiple dummy entities to transfer funds to Dubai-based companies without availing any declared services through the Authorised Dealer (AD) banks. Acting swiftly on this information, the ED conducted extensive searches at Bhupesh Agarwal’s premises, as well as those of his linked entities and individuals.
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“During the investigation, startling revelations emerged. The authorities found evidence pointing towards three companies, namely M/s Lunarart Media Entertainment Pvt. Ltd., M/s Cineblossom Films & Productions Pvt. Ltd., and M/s Rocster Entertainment LLP, all controlled by Bhupesh Agarwal.
These companies are suspected of remitting approximately Rs 52.83 crore to Dubai-based entities under the guise of audio-video services,” said the officials. However, it was discovered that no such services were ever rendered by the above-mentioned companies.
Adding to the gravity of the situation, the directors of the implicated companies, along with the chartered accountant/company secretary responsible for incorporating them, confessed to forming the entities based on Bhupesh Agarwal’s instructions. They further admitted that all the payments remitted abroad in the name of these companies were orchestrated by Bhupesh Agarwal.
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