In accordance with the terms of the Foreign Exchange Management Act of 1999, the Directorate of Enforcement (ED) has taken possession of fixed deposits worth Rs. 16 crores that belonged to M/s Alphageo (India) Limited (FEMA, 1999).
Based on evidence that M/s Alphageo had moved and parked some monies in the United Arab Emirates in violation of the FEMA, 1999, the ED opened an inquiry against M/s Alphageo India Limited (M/s Alphageo).
Investigations discovered that M/s Alphageo is a Hyderabad-based business that offers seismic survey services to a number of oil exploration and production firms in India and internationally. The business has been importing different seismic data-gathering equipment from many providers with locations in France, Singapore, the Netherlands, and other countries.
The investigation also revealed that M/s Alphageo had purchased seismic data acquisition equipment directly from a number of suppliers, but that Rajiv Saxena, a chartered accountant based in Dubai and a hawala operator for these imports, had maintained and controlled an entity called M/s Matrix Group DMCC through which the payment for the equipment had been made. Further investigation revealed that M/s Alphageo had parked funds into the account of M/s Matrix Group DMCC for the personal benefit of Dinesh Alla, Chairman and Managing Director of M/s Alphageo (India) Limited, in violation of the provisions of the FEMA Act, 1999, by over billing import bills for these imports. Investigations indicated that USD 25,34,628 was stored outside of India in violation of FEMA’s 1999 Section 4 regulations.
Therefore, under Section 37A of the FEMA, 1999, the equivalent value of the foreign monies parked in the United Arab Emirates by M/s Alphageo equal to Rs. 16 Crore has been seized in India. Additionally, an inquiry into the situation is ongoing.
