ED Imposes Huge Penalty on MP Raghu Ramakrishna Raju’s Firm

Amaravati: Enforcement Directorate (ED) has imposed a penalty of Rs 40 crore on MP K Raghu Ramakrishna Raju for violating the Foreign Exchange Management Act (FEMA).

The ED in its order said that Mauritius-based Strategic Energy Investments Ltd has invested  Rs 202 crore in Raju-owned Ind Barath Sun Energy Pvt Ltd (IBSEPL) company.

Out of the foreign direct investment (FDI) of Rs 202 received, Raju’s company diverted Rs 200 crore to Ind Bharat Energy Ltd (Utkal). The ED says the transfer of amounts between these two companies had violated FEMA provisions and served notice to the company owner. However, Raju said the approval of the market regulator is not required under the FDI policy. 

Raju has moved the Telangana High Court challenging the federal probe agency’s penalty order. The court has sought a response from the ED in the matter. 

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