ED register case against Ferns Estates and Developers under FEMA

The Directorate of Enforcement (ED) on Wednesday registered a complaint against Errol Fernandes, promoter of realty firm Ferns Estates and Developers, and his family members under the Foreign Exchange Management Act, 1999 (FEMA) for contravention to the tune of ₹20.5 crore and issued show-cause notices.

According to the official release, the enquiries in the matter were initiated on the basis of credible information that Errol Fernandes had made significant contraventions of provisions of FEMA, 1999 during the period from 2017 to 2024. ED investigation revealed that Mr. Fernandes and his family members sent remittances to the tune of ₹ 20.5 crore abroad, ED said.

Investigation revealed that ₹3.6 crore was remitted by Errol Fernandes and his family members for investment under the Liberalised Remittance Scheme(LRS). However, on redemption of the investment, the amount was kept in the accounts abroad and remitted back to India after a long  delay, ED said. 

Further, investigation revealed that ₹16.8 crore was remitted by them for family maintenance under LRS, however, investigation revealed that no family members and relatives were residing abroad during that period and the money taken outside India for family maintenance was also used for investment outside India. This money also, on redemption of the investment, was kept in the accounts abroad and remitted back to India after a long delay, ED claimed.