ED Raids BC Jindal Group over Suspected Rs505 Crore FEMA Violations
Moneylife Digital Team 25 September 2025
The directorate of enforcement (ED) has carried out search operations at 13 premises linked to the BC Jindal group and its directors over suspected violations of the Foreign Exchange Management Act (FEMA), 1999. The searches were conducted on 18th September and 19 September 2025 across locations in Delhi national capital region (NCR) and Hyderabad.
 
According to ED, the investigation centres on alleged irregularities involving Jindal India Thermal Power Ltd (JITPL), Jindal India Powertech Ltd (JIPL) and Jindal Poly Films Ltd (JPFL). The agency suspects that group entities, beneficially owned by industrialist Shyam Sundar Jindal, his wife Shubhdra Jindal, and son Bhavesh Jindal, diverted and parked funds overseas through their own entities in contravention of FEMA norms.
 
The probe stems from specific inputs that the BC Jindal group had remitted Rs505.14 crore outside India to its Dubai-based entity, Topaz Enterprise DMCC, for acquiring Garnet Enterprise DMCC under the guise of overseas direct investment (ODI).
 
Between FY13-14 and FY16-17, JPFL invested Rs703.79 crore in JIPL which was subsequently used to fund a thermal power plant in Odisha. Instead of recovering these investments, JPFL—listed on the stock exchange—wrote them off in FY18-19, selling the holdings at a significant loss to its own promoters and group firms. ED alleges this amounts to siphoning public investors’ money.
 
Further, in May 2024, JIPL received Rs853.72 crore from JITPL by redeeming preferential shares. Rather than returning this sum to JPFL, investigators say Rs505.14 crore was diverted to Topaz Enterprise DMCC, Dubai, controlled personally by Mr Jindal. Through this structure, Topaz acquired full ownership of Garnet Enterprise DMCC which, in turn, holds a 48% stake in Jindal Polyfilm Netherlands BV. The latter controls several subsidiaries in the Netherlands, the US, and other countries.
 
ED suspects the group engaged in 'round-tripping'—routing funds abroad under sham transactions and inflated valuations, only to reinvest them through foreign subsidiaries. Two valuation reports of foreign entities, allegedly prepared by related valuers, are believed to have been used to justify excessive remittances.
 
Recovered documents show that Mr Jindal is the beneficial owner and sole shareholder of Topaz Enterprise DMCC, exercising control over its finances and linked overseas entities. The group is said to maintain companies across multiple jurisdictions, including the Netherlands, US, Belgium, Italy, Luxembourg, Singapore, China, the UAE and Germany.
 
The agency has also pointed out that Mr Jindal was not present in India during the searches, having travelled to Hong Kong citing official engagements. He has not yet returned to join the investigation.
 
ED confirmed that further inquiries are underway.
 
Comments
Free Helpline
Legal Credit
Feedback